ByAfter months of dispute, Apple and the Indonesian government ultimately settled to lift the iPhone 16 sales ban in the Southeast Asian country.
The iPhone 16 sales were banned in Indonesia in October last year after the nation’s Ministry for Industry accused Apple of failing to fulfill its investment commitments. To lift the ban, Apple initially offered a $10 million investment plan, and when it was rejected, the technology firm raised the bail to $109 million. The second offer was also refused by the Indonesian government.
Bloomberg now reports that Apple has agreed to invest $1 billion in the nation to lift the ban. Apple and the Ministry for Industry will sign a memorandum of agreement this week as the government has pledged to lift the iPhone 16 sales ban “as soon as possible.”
The Indonesian government has long sought Apple to establish an R&D facility in the country. In addition to investing $1 billion in Indonesia, Apple is also dedicated to training and involving locals in research and development so that local Indonesians can develop similar software and designs.
However, Apple’s commitment to the government does not end there. The iPhone maker will also build an AirTag manufacturing plant in Indonesia’s Batam island through partnering with Luxshare Precise Industry. The plant is expected to account for 20 percent of AirTag’s global production.
Additionally, Apple will build a facility in Bandung to produce various accessories. The outlet says Apple has not yet planned to move iPhone production to Indonesia.
A $1 billion investment commitment seems modest compared to Apple’s recent vow to invest $500 billion in the US over the next four years. However, losing the Indonesian market, which boasts a population of 278 million people, could have a huge impact on Apple’s revenues.
