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Indonesia Expected to Approve Sales of Apple's iPhone 16s

Indonesian Industry Minister Agus Gumiwang Kartasasmita announced on Wednesday that Apple will soon be able to introduce its iPhone 16 in Indonesia, following successful negotiations that included agreements for an Apple manufacturing plant and a research and development center.

The recent deal marks the conclusion of strained talks between Apple and Indonesia caused by the tech giant's previous failure to comply with regulations on locally-produced components.

Minister Agus described the negotiations with Apple as challenging but stated that the company is currently in the process of acquiring a local content certificate required to sell its smartphones.

In a press briefing, Agus emphasized the importance of fairness, noting, "There's a principle of justness that we're trying to uphold," while referencing the national flag's colors.

Concerns have been raised by analysts about the local content requirements potentially impacting investor confidence and sparking protectionism worries.

Under the multimillion-dollar agreements with Apple, the company will invest in a software research and development facility near Jakarta, and set up manufacturing plants for components, including AirPods headphones, Minister Agus confirmed.

Apple has yet to respond to requests for comment on the agreements. However, a representative mentioned in a report by CNN Indonesia expressed satisfaction in expanding investments in Indonesia and making its product range available to consumers.

Although Apple does not currently operate manufacturing plants in Indonesia, it has established local developer academies since 2018.

Meeting Indonesia's regulations regarding local content is typically achieved through local collaborations or sourcing components domestically.

No specific timeline was provided by Agus regarding when Apple would be permitted to sell its iPhone 16 in Indonesia.

In the third quarter of last year, Apple was positioned outside the top five smartphone brands in Indonesia, as reported by research firm Canalys.