Indonesia could soon lift its iPhone 16 sales ban as Apple’s $1 billion investment offer inches closer to final approval, reports Bloomberg.
Per the report, President Prabowo Subianto has instructed the Indonesian government to accept Apple’s proposal, which now includes additional pledges. The Cupertino company’s written proposal now includes commitments to set up an AirTag manufacturing facility in Batam, which will supply nearly a fifth of AirTag’s global shipments. Apple will also erect another facility in Bandung to build another type of accessories.
Despite the initial acceptance of Indonesia towards Apple’s proposal, a timeline of when the iPhone 16 sales ban might be lifted is yet to be established. However, it’s likely that the sales ban won’t be reversed until the beginning of 2025.
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Apple first pledged to invest $10 million in Indonesia to lift the iPhone 16 sales ban enacted in October, before significantly raising its offer to $100 million shortly after. Both offers have been rejected, and Apple is left with no choice but to significantly up its offer if it wants to gain access to the country’s market of 280 million inhabitants. Apple will now have to pay 100 times more than its original offer of $10 million to sell its latest iPhone lineup.
The development comes as Apple’s subsidiary in Indonesia hasn’t fulfilled the country’s 40 percent local components production quota for the iPhone 16, forcing a total sales ban on the device. However, older Apple products can still be sold and marketed in the country and haven’t been affected by the ban.