The dispute between the Indonesian authorities and Apple is rumbling on as the smartphone giant apparently remains barred from selling the iPhone 16 in Indonesia despite a recent investment deal.
Industry Minister Agus Gumiwang Kartasasmita agrees that Apple has struck a deal to build a facility producing its Airtag tracking device on Indonesia's Batam island, close to Singapore. This, however, does not count as a locally made iPhone part and thus has not met domestic content rules, the industry minister has said.
Reuters notes that the minister explained: "There is no basis for the ministry to issue a local content certification as a way for Apple to have the permission to sell iPhone 16 because [the facility] has no direct relations." He added that the ministry would only count phone components.
Last year, Indonesia banned iPhone 16 sales after Apple failed to meet requirements that smartphones sold domestically should comprise at least 35% locally made parts.
In December we reported that details of the planned US$1 billion factory investment were still being finalised. It seemed likely at the time that Apple was close to seeing a ban on the sales of its iPhone 16 models lifted in Indonesia.
Apple launched the iPhone 16 in September, but sales of the device were banned in October except, as we reported, for incoming travellers and air crew who own the devices; they can still bring them for personal use. The device remains unavailable for purchase in Indonesia.
Apple has no manufacturing facilities in Indonesia, a country of about 284.7 million people, but has, since 2018, set up application developer academies.
