8-1-2025 (JAKARTA) Indonesia’s government has reaffirmed its stance on blocking domestic sales of the upcoming iPhone 16, declaring Apple’s proposed manufacturing investment insufficient to meet the nation’s local content requirements.
Industry Minister Agus Gumiwang Kartasasmita announced Wednesday that Apple’s plan to establish an AirTag manufacturing facility fails to satisfy Indonesian regulations, which mandate that 35% of smartphone components must be produced locally.
“The proposed AirTag facility, whilst welcome, does not address our core requirement for smartphone component manufacturing,” Kartasasmita told reporters at a press briefing in Jakarta. “We cannot issue local content certificates based on the production of mere accessories.”
The American tech giant had proposed establishing a manufacturing plant on Batam island, strategically positioned near Singapore, with operations slated to begin in early 2026. The facility would produce AirTags, Apple’s bluetooth tracking devices used for locating personal belongings.
Investment Minister Rosan Roeslani revealed that discussions with Apple’s vice-president of government affairs, Nick Ammann, stretched across two days, resulting in what was termed an “innovative investment” proposal. However, Indonesian officials have responded with a counterproposal, the details of which remain undisclosed.
Despite maintaining developer academies in Indonesia since 2018, Apple has yet to establish any manufacturing presence in the world’s fourth most populous nation. The tech giant’s absence from local production has become increasingly problematic as Indonesia tightens its grip on domestic manufacturing requirements.
Whilst Kartasasmita acknowledged that sanctions could be imposed for continued non-compliance, he emphasised this would be a last resort. “We remain open to dialogue and are exploring various alternatives with Apple,” he stated. “Our goal is to reach a mutually beneficial arrangement that aligns with our industrial policy objectives.”
