After prolonged negotiations, Apple secures approval to sell iPhone 16 in Indonesia
The Indonesian government has officially allowed Apple to sell the iPhone 16 in the country after months of negotiations over regulatory compliance. The breakthrough was announced by Minister of Industry Agus Gumiwang Kartasasmita following the signing of a Memorandum of Understanding (MoU) between Apple and the Ministry of Industry (Kemenperin) on February 26, 2025. The agreement marks a significant step forward in Apple’s commitment to fulfilling Indonesia’s local component regulations and investment obligations.
The entry of the iPhone 16 into Indonesia was delayed due to Apple’s failure to meet the local component requirements (TKDN). According to Indonesian regulations, foreign tech companies must comply with local manufacturing or innovation contributions to obtain market approval. Apple, which initially did not meet these criteria, was required to negotiate terms with the government to resolve outstanding obligations and ensure compliance with the regulations set by the Ministry of Industry.
Apple’s negotiations with the Indonesian government lasted over five months, with discussions focused on Apple’s local industry contributions. Minister Agus Gumiwang Kartasasmita revealed that the agreement included a USD 10 million (SGD 13.6 million) debt settlement and a commitment to new investments in Indonesia. Apple opted for the “innovation” compliance scheme, allowing it to meet TKDN requirements without establishing a manufacturing plant, unlike other smartphone brands operating in the country.
One of the key investment initiatives under this agreement is the establishment of an AirTag production facility in Batam by Luxshare-ICT, one of Apple’s global supply chain partners. The factory, set to receive an investment of USD 150 million (SGD 204.5 million), will supply 65% of AirTags globally. Additionally, PT Sat Nusapersada will be responsible for providing batteries for these AirTags, further integrating Indonesian industries into Apple’s supply chain.
Beyond Batam, Apple has committed to expanding its local presence with a new production facility for accessories in Bandung. This factory, operated by PT Long Harmony, will manufacture mesh fabric components used in the production of AirPods Max. The move signifies Apple’s deeper integration into Indonesia’s tech ecosystem, supporting local employment and supply chains.
Another major component of Apple’s investment is the establishment of a Research and Development (R&D) center in Indonesia, valued at USD 160 million (SGD 218.6 million). The R&D center will focus on technological advancements and workforce development, reinforcing Apple’s long-term commitment to Indonesia’s tech industry. The agreement also ensures that Apple remains compliant with future regulatory changes.
With Apple meeting the government’s conditions, the Ministry of Industry confirmed that the TKDN certification for the iPhone 16 would be issued soon, allowing the device to be sold in Indonesia. Minister Agus assured consumers that iPhone 16 sales would commence before the upcoming Eid holiday, catering to high demand among Indonesian Apple users.
Apple’s agreement with Indonesia demonstrates the growing importance of regulatory compliance for global tech firms entering emerging markets. The deal not only enables iPhone 16 sales but also strengthens Indonesia’s position as a key player in Apple’s global supply chain. The AirTag production plant in Batam and accessory manufacturing in Bandung highlight Indonesia’s increasing role in global electronics manufacturing. For the Indonesian economy, these investments translate into job creation, technological advancements, and a more competitive local industry.
Sources: Detik (2025), CNN Indonesia (2025)
Keywords: Apple iPhone, Indonesia Market, Local Investment, Government Agreement, Apple Manufacturing
