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Apple, Indonesia reach accord, Apple may begin selling iPhone 16 units in the country “very, very soon”

If you live in Indonesia, the iPhone 16 will finally be coming your way at long last.

According to an Indonesian government minister, the almost four-month-long ban on sales of the iPhone 16 may be lift “very, very soon.” The country banned sales of the iPhone 16 in October 2024 given a conflict regarding the country’s laws about locally sourced components, and also because Apple had fallen short of its investment commitments.

Per Bloomberg, the months-long negotiations between Apple and Indonesia may soon come to a resolution. While no specific details of the deal have been released, investment Minister Rosan Roeslani said. “Hopefully within one or two weeks, this issue can be resolved.”

The issues of sourcing components locally is complex, and while sources and the reported numbers vary, Indonesia reportedly requires firms to make between 35 percent and 40 percent of a device’s components in the country, to which the government has previously allowed exceptions. Apple has benefited from these exceptions and until 2024 had a deal whereby it invested in Indonesia in other ways. The company’s commitment was said to be around $110 million, and Apple apparently only invested approximately $95 million. Following the ban, Apple tried making a derisory offer of $10 million more, but Indonesia rejected that — and Apple’s next offer of $100 million. The country then also said that Apple’s offer of investing $1 billion, wasn’t enough either.

Apple is said to have offered to build a factory in Indonesia, which would be manufacturing AirTags. Indonesian Industry Minister Agus Gumiwang Kartasasmita said that this couldn’t affect the iPhone 16 ban “because [the factory] has no direct relations [to iPhone components].” An unknown settlement was reached in which Apple and Indonesia sorted out the component quota, thereby allowing for the iPhone 16 to come to the country.

Stay tuned for additional details as they become available.

Via AppleInsider and Bloomberg

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