Key TakeawaysApple and Indonesia recently negotiated the terms of their deals to uplift the 5-month-long ban on the sale of iPhone 16.In October 2024, Indonesias Ministry of Industry banned the sale of iPhone 16 and a few other Apple products citing Apples failure to meet investment conditions.As per the new terms of the deal, Apple will have to invest a total of $1 billion alongside training the locals in component manufacturing.The months-long struggle between Indonesia and Apple is finally coming to an end as the two parties have decided on terms to lift the ban on the sale of iPhone 16.In October last year, Indonesia decided to ban the sale and use of the iPhone 16 along with a few other Apple products such as the Watch 10 series. The ban extended to new devices as well as those that have already been sold. This means anyone within the borders of Indonesia, including tourists, could no longer use their iPhone 16 phones.Note: The ban was only on the latest iPhone 16 model. If you had an earlier model, you could continue to use it.The reason behind this ban was Apples failure to meet local guidelines. As per Indonesian law, it is mandatory for all domestically sold devices to have at least 40% of their components locally sourced. This is done to boost the local economy and employment.If a company doesnt want to source components locally, it can bypass this mandate by investing in the country.Apple took the second route and initially promised to invest $1 billion in building local development and research units. These units would develop the components used in Apple devices. However, the company failed to deliver on its promises which resulted in the ban.Given the gravity of the situation, Apple renewed the offer to invest $1 billion in the country which President Prabowo Subianto asked his ministers to accept. But last month, they suddenly backed out of the deal, hoping to negotiate for better terms.So now, on top of the $1 billion investment, Apple will also have to train local Indonesian companies in research and development to be able to manufacture similar components.This is a better deal for Apple, which was initially being forced to manufacture iPhones locally. However, Indonesia has been known to retreat from its promise, so until things are set in stone, theres still a chance for the deal to fall through.Apple was already struggling to gain traction in the Indonesian market. As of last year, its not one of the top 5 smartphones sold in the country. The biggest reasons behind this are the price of iPhones and the purchasing power of the locals. A lot of them cannot even afford the latest models such as the iPhone 16 and often resort to buying second-hand models.Regardless of that, the countrys 280 million population is too good an opportunity to let go. Now that the initial legal hurdles are out of the way, Apple might find a way to expand its market share in the country which, as of January 2025, is merely 7.3%.Add Techreport to Your Google News Feed Get the latest updates, trends, and insights delivered straight to your fingertips. Subscribe now! Subscribe now Alpa is a senior editor with a wealth of experience in alternative finance, fintech, cryptocurrency, app security software, and the medical industry. She's currently an in-house managing editor with the Techreport team.Alpa is passionate about breaking down complex topics and sharing informative content that provides value. View all articles by Alpa Somaiya Our editorial processThe Tech Reporteditorial policyis centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written byreal authors.