Heaptalk, Jakarta — In response to Indonesia’s sales ban on the iPhone 16 since October 2024, Apple is considering building a factory there.
According to Nikkei Asia on Monday (02/17), this step will significantly impact Indonesia, the largest economy in Southeast Asia. “If this plan comes to fruition, Indonesia will become the second country in the region after Vietnam to have an iPhone production facility,” it explained.
Apple itself, on its official website on Monday (02/17), prepared US$1 billion to be used for building local manufacturing facilities for Apple AirTag tracking devices and for the possibility of an iPhone production line in Indonesia.
Apple’s decision to establish a factory in Indonesia shows its seriousness in maintaining its market there. If all plans go as hoped, there is an excellent chance that the iPhone sales ban will soon be lifted, allowing Apple to sell its latest devices in Indonesia again. This step also reflects Indonesia’s strengthening position as a technology manufacturing hub in Southeast Asia, creating more job opportunities and economic prospects for the local industry.
In October 2024, the iPhone 16 was banned from being sold in Indonesia. According to the Ministry of Industry, the company led by Tim Cook failed to meet the Domestic Component Level (TKDN) requirements. Therefore, Apple engaged in discussions with the Ministry of Industry.
However, the government rejected all of Apple’s proposals, ranging from building an Apple Academy to producing AirTag accessories in Indonesia, because the domestic component level would only be calculated from the phone’s local components, not other products. Apple finally gave in and is considering building its factory in Indonesia, specifically in Batam.
