Apple has agreed to make 1 billion dollars of investment in Indonesia as part of a deal to have Indonesia lift its ban on iPhone sales. The news was made by Indonesia’s Industry Minister Agus Gumiwang Kartasasmita, which is a big breakthrough for the tech giant in the Southeast Asian market. This investment is expected to open the way for the sale of Apple’s iPhone 16 series, which is due to be launched soon after months of negotiation with the Indonesian government. The ban was imposed in October 2024 because Apple did not comply with Indonesia’s local sourcing requirement. At first, Apple had made only $95 million, a far cry from what the government had hoped for. Subianto would not approve the deal until he got tougher terms. His administration intends to use this investment, which is from a major U.S. tech company, to build up the country’s local manufacturing, bring in more foreign investments, and make Indonesia a significant player in the global smartphone industry. Apple has also planned to set up a manufacturing plant on Batam Island to build AirTags and the company that will handle the production is Luxshare Precision Industry Co. This move could also help Apple in its efforts to diversify its supply chain away from China. Indonesia is a massive market with 278 million people, most of whom are young and tech-savvy, and Apple wants a piece of that action as its Chinese revenues decline. Although Apple does not currently rank among the top five smartphone brands in Indonesia, it acknowledges the country’s increasing consumer base as a long-term opportunity. Thus the agreement has been reached, and Apple can continue to sell its products in Indonesia and achieve a significant victory not only for the company but also for the government of Indonesia.
Apple Invests $1 Billion in Indonesia
