Apple can once again sell iPhone 16 in Indonesia
What's the story
Apple and the Indonesian government have struck a deal to end the five-month-long ban on iPhone 16 sales in the country. The US tech giant has also promised to up its investment in the country to $1 billion. The Ministry for Industry, which enforced the ban, is expected to sign a memorandum of understanding with Apple this week.
Ban details
Ban due to non-compliance with manufacturing requirements
The dispute started in October when Indonesia refused a permit for the sale of Apple's latest device, citing non-compliance with local manufacturing requirements for smartphones and tablets. In response, Apple pledged a $1 billion investment in the country. However, last month, the Ministry of Industry kept the ban as it sought better conditions from Apple.
Investment plans
Apple's commitment to local training and development
Along with the $1 billion investment, the US firm has also pledged to train locals in research and development of its products. The idea is to empower them to develop similar software and design their own goods. The investment in innovation would be done via programs other than the existing Apple academies.
Strategic win
Agreement marks victory for Indonesia's hardball tactics
The deal is viewed as a win for Indonesia, whose aggressive negotiating tactics have resulted in a major foreign company investing more in product development and revving up local manufacturing. The deal also comes at a critical time for President Prabowo Subianto, who could benefit from the optics of a US tech giant bowing to his administration to bolster his domestic standing.
Investment breakdown
Apple's investment includes setting up plant
Apple's $1 billion investment involves setting up a factory on Batam Island for AirTag production, with major supplier Luxshare Precision Industry Co. handling operations. The plant will reportedly account for 20% of the world's AirTag production. Some of the investment will also go into establishing another facility in Bandung and supporting Apple academies that give students tech skills such as coding.