After banning the iPhone 16 for 5 months, Apple and Indonesia have finally come to a mid -point and will soon start selling in the country. According to Bloomberg report, Indonesia’s Ministry of Industry is ready to provide the necessary permits to Apple, when the Memorandum of Understanding (MoU) is signed. MOU says that Apple will invest $ 1 billion in Indonesia, including funding for a plant on Batam Island to build airtags. Additionally, the company will provide research and development training for local people. However, Apple has not yet disclosed any scheme to produce iPhones in the country.

A formal announcement may come as soon as this week, although Bloomberg warns that the deal is not final, as Indonesia has reversed decisions in the past. This marks a change from earlier expectations that Apple can establish local production to follow Indonesia’s rules. Instead, the company has opposed the pressure, even the country has implemented strict rules in response to the late investment commitments of Apple.

The deal will officially lift the ban that has blocked the sale of iPhone 16 in the country. In preparation, the Ministry is planning a press briefing to announce new sales permits. Originally imposed in October called Apple from Indonesia’s decision to deny a permit to Apple due to non-compliance of local manufacturing rules. Let’s look at the reasons for the iPhone 16 ban in Indonesia.

Why did Indonesia ban iPhone 16?

Last year, Indonesia banned the sale of iPhone 16 as it was said that Apple did not meet the required level of locally created parts to sell the phone domestically. Companies can meet the domestic requirement through local participation or by sourcing parts domesticly.

The cross of this issue lies in Apple’s failure to meet its complete investment commitment. So far, the company has invested 1.48 trillion rupees, which reduces the required 1.71 trillion rupees to 230 billion rupees. This difference has obstructed Apple’s ability to obtain TKDN (domestic component level) certification, which suggests that at least 40 percent of the device’s components are sourced to be sold locally in Indonesia.

During that point, Indonesia’s Industries Minister, Agus Gumwang Kartasmita stressed that the ministry could not give the necessary permits unless Apple fulfills its obligations. He also confirmed that the iPhone 16 is unavailable in the country due to Apple’s failure to meet local investment requirements – an essential position to obtain the necessary authentication.

The absence of iPhone 16 from major e-commerce platforms such as Tocopadia, Blibli, and Lajda, as well as from Apple’s official Indonesian website, further strengthens the existence of the sale ban.

But now, it seems that Gates will soon open to reach the iPhone 16 series for users in Indonesia.