Indonesia stands firm on iPhone 16 ban amid Airtag production dealIndonesia stands firm on iPhone 16 ban amid Airtag production deal

Indonesia is maintaining its ban on the sale of the iPhone 16 in the country, despite an investment commitment from Apple this week to build a $1 billion Airtag manufacturing facility in Batam that would be operational by early 2026.

Last year, the country's industry ministry blocked the sale of the latest iPhone model because it did not meet a requirement that electronics such as smartphones and tablets sold domestically contain at least 35% locally made parts. Google's Pixel phones were also barred in Indonesia for the same reason.

"We do not have the basis to issue the local content certificate for Apple products, especially the iPhone 16," Indonesia Industry Minister Agus Gumiwang Kartasasmita told local media on Wednesday.

Apple's vice president of global government affairs Nick Ammann was reportedly in Jakarta this week to meet with Indonesian ministers in an effort to persuade the government to lift its ban on the sale of the iPhone 16.

Agus was among the government officials that the Apple executive met during his visit.

On Tuesday, Investment Minister Rosan Roeslani confirmed that Apple had proposed setting up a manufacturing facility for its Airtag tracking device in Batam, near Singapore, with a local partner.

"This is just the initial phase, and there will be more of Apple’s vendors coming [to Indonesia] so [the] $1 billion investment pledge will eventually increase. Vietnam already has over 30 Apple suppliers, and Thailand has more than 23 vendors. So our [cooperation] scheme will be similar to Apple's investment in other ASEAN economies,” Rosan said, as reported by the Jakarta Globe.

Related:Indonesia's protectionist pressure could bring $1B investment from Apple

Rosan claimed that the factory in Batam would supply 65% of what Apple would need to meet its demand around the world.

Batam deal does not open door for the iPhone 16

The Indonesian government has been calling on Apple to increase its investment in the country, specifically seeking manufacturing investments on par with what the tech giant has planned in other Southeast Asian countries.

Apple does not have a manufacturing facility in the country. But, it runs four local developer academies to train students and engineers in app development.

Speaking to local media on Wednesday, Agus pointed out that the proposed Airtag factory in Batam could not be the ticket for the iPhone 16 to enter the Indonesian market, as the device produced could not be considered an iPhone part.

"It is not directly related to the manufacturing process of mobile phones, handheld computers, and tablets in the provisions to obtain Domestic Component Level (TKDN) certification," he said.