Indonesia has indicated that it may extend its iPhone sales restrictions to Apple’s upcoming iPhone 17 unless the company complies with local manufacturing requirements, the country’s industry minister has warned.
This warning comes as Indonesia continues to enforce its ban on iPhone 16 sales, despite Apple’s recent proposal to invest $1 billion in building a factory for AirTag tracking devices in the country. Officials have stated that the proposed facility, planned for Batam Island near Singapore, does not meet Indonesia’s requirement that 40% of smartphone components be sourced locally.
“If Apple wants to sell the iPhone 16, and especially if they plan to launch the iPhone 17, the decision is entirely up to them,” Industry Minister Agus Gumiwang Kartasasmita said, hinting that the current ban could be extended to future models.
While Investment Minister Rosan Roeslani revealed that Apple has committed to starting operations at the AirTag facility by early 2026, Kartasasmita dismissed the proposal as insufficient, clarifying that only phone components would count toward fulfilling the regulation. “As of this afternoon, the Ministry of Industry does not have the basis to issue the local content certificate for Apple products,” he said.
With a population of 280 million and 354 million active mobile phones, Indonesia has long used its sizable consumer market to attract foreign manufacturing. Apple has gradually raised its investment proposals from $10 million to the current $1 billion offer. However, officials argue that these figures remain inadequate given Apple’s sales in the country.
The ban, which was implemented in October 2024, currently affects both Apple’s iPhone 16 and Google’s Pixel phones. Although Apple operates four developer academies in Indonesia, it has yet to establish any manufacturing facilities in the country.
