Apple Inc. and the Indonesian government have agreed on terms to lift the ban on iPhone 16 sales in the country. The agreement, expected to be signed this week, marks the end of a five-month standoff that pushed Apple to boost its investment in Indonesia to $1 billion.

The ban was imposed in October after Apple failed to meet the domestic manufacturing requirements, which mandate that smartphones sold in Indonesia must contain at least 35% locally-made components.

To resolve the dispute, Apple pledged a $1 billion investment in a manufacturing plant focused on producing smartphone components and other products. This offer was reportedly encouraged by President Prabowo Subianto, urging his ministers to accept the proposal.

Alongside the investment, Apple has committed to training local talent in research and development (R&D) outside of its existing Apple academies. This move aims to support the government's goal of encouraging Apple to establish an R&D facility in the country, allowing locals to contribute to software development and product design.

Despite this significant commitment, Apple has no immediate plans to manufacture iPhones in Indonesia.

While both sides have agreed to the terms, there is still a possibility that the deal could fall through, as the Indonesian government has previously pulled back from prior decisions.

The negotiation process saw setbacks, including a last-minute failure in January. However, discussions remained active, and last week, Industry Minister Agus Gumiwang Kartasasmita confirmed that Apple had settled a $10 million debt owed to the government for failing to comply with local regulations between 2020 and 2023.

The upcoming press conference is expected to formalize the agreement, with the Ministry of Industry set to issue the necessary permits for iPhone 16 sales as soon as possible.

PHOTO: APPLE

This article was created with AI assistance.