Apple has been granted permission to resume sales of its iPhone 16 smartphones in Indonesia, following a five-month ban imposed by the Indonesian government. The ban was lifted after Apple reached an agreement with the government, according to a statement from the Industry Ministry.

The ban was initially imposed in December due to Apple's non-compliance with Indonesia's regulation mandating that domestically sold smartphones and tablets must contain at least 40% locally produced components. However, Apple has since committed to investing $1 billion in its initial factory in Indonesia, which will manufacture components for smartphones and other Apple devices.

Indonesia's Industry Minister, Agus Gumiwang Kartasasmita, stated that Apple is currently in the process of obtaining a local content certificate, which will allow the company to market its devices in the country. This development marks a significant turnaround for Apple, which had its $100 million investment proposal rejected by Indonesia in November due to insufficient funding.

Apple's decision to invest in local manufacturing in Indonesia is seen as a strategic move to reduce its reliance on China. The company has been broadening its supply chains in recent years, with the iPhone 16 currently being manufactured in Brazil, India, and China, while various AirPods models are assembled in Vietnam.

Indonesia has been cracking down on foreign tech companies that fail to comply with its local content regulations. In October, the government prohibited the sale of Google Pixel phones from Alphabet due to similar non-compliance issues. The top smartphone brands in Indonesia during the third quarter of 2024 are Oppo, Xiaomi, Transsion, Samsung, and Vivo.

Apple's investment in Indonesia is also seen as a significant development for the country's economy. The company's commitment to investing $1 billion in its initial factory is expected to create jobs and stimulate local economic growth. In its home country, Apple has announced plans to invest $500 billion over the next four years in high-end manufacturing, engineering, and education, with a specific focus on artificial intelligence and chip making for AI workloads.

Tim Cook, Apple's CEO, had visited Indonesia last year and expressed the company's interest in exploring manufacturing opportunities in the country. The agreement reached between Apple and the Indonesian government marks a significant milestone in the company's efforts to expand its global manufacturing footprint.

The resumption of iPhone 16 sales in Indonesia is expected to have a positive impact on Apple's revenue in the region. The company's ability to comply with local regulations and invest in local manufacturing is seen as a key factor in its success in the Indonesian market.

As Apple continues to expand its global manufacturing presence, the company's ability to navigate complex regulatory environments will be crucial to its success. The agreement reached with the Indonesian government serves as a testament to Apple's commitment to investing in local economies and complying with local regulations.