Apple (AAPL.US) unlocks $1bn Indonesia market: iPhone 16 release, Southeast Asia's consumer electronics race welcomes investment new wind.

Apple Inc. has signed an investment agreement with Indonesia, paving the way for the resumption of iPhone 16 sales in the Southeast's largest country. The deal ends a five-month dispute that began in October when Indonesia refused to grant Apple a sales license, citing the company's failure to comply with domestic smartphone and tablet production requirements. The agreement was announced by Indonesia's Industry Minister Agus Gumiwang Katasmita at a press conference in Jakarta on Wednesday, according to reports. Apple's commitment to invest $1bn in the country finally persuaded the government to change its stance. The deal is a major win for Indonesia, whose tough stance succeeded in persuading a large foreign company to increase investment and develop local manufacturing, rather than just using the country as a sales hub. The government had previously said Apple's investment in Indonesia was only about $95m. For Apple, the deal gives it access to Indonesia's vast consumer market, though its smartphone market share in the country is not in the top five. Indonesia has a population of 278 million, more than half of whom are under 44 and tech-savvy, making it a potentially lucrative market. The deal is also significant for Indonesian President Joko Widodo, whose image of bowing to the government may help boost his standing at home, especially in the context of his policy reversals and large-scale cost-cutting plans.