Apple to Invest $10 Million in Indonesia to Lift iPhone 16 Ban, Build Local Factory

In a bold response to the recent ban on its iPhone 16 and Apple Watch 10 series in Indonesia, Apple has pledged a $10 million investment to establish a new factory in the country. This comes after Indonesia blocked Apple from selling its flagship devices due to non-compliance with a regulation requiring 40% local content in products sold locally. The move, as reported by Bloomberg, underscores Apple’s commitment to maintaining its presence in the Indonesian market and resolving regulatory hurdles.

The planned facility, located in Bandung, will be developed in partnership with Yageo Corporation, a longtime Apple supplier. The factory will primarily focus on producing accessories and essential components for Apple’s devices, marking a significant step toward meeting Indonesia’s local content requirement.

Apple has formally submitted its proposal to Indonesia’s Ministry of Industry and is currently awaiting feedback. By establishing local manufacturing operations, the tech giant aims to fulfill the 40% content mandate, potentially paving the way for the ban on the iPhone 16 and Apple Watch 10 to be lifted.

This local investment strategy reflects Apple’s ongoing commitment to expanding its footprint in Southeast Asia, one of the world’s most dynamic tech markets. Notably, Apple is not alone in navigating Indonesia’s strict regulatory environment. Google, too, has encountered restrictions, with its Pixel 9 series also barred from sale for failing to comply with the same local content policy.

As Apple and other tech companies adjust to the region’s regulatory landscape, these investments could help solidify their positions while strengthening ties with local industries. For Indonesian consumers, Apple’s Bandung facility brings hope that they will soon be able to access the iPhone 16 and Apple Watch 10 series, along with other future innovations from the tech leader.