Indonesia’s iPhone 16 ban prompts $100 million investment proposal from Apple

Apple is said to be proposing a $100 million investment in Indonesia to address a recent ban on the sale of its iPhone 16 models in the country. The move, as per reports citing insider sources, comes as the tech giant seeks to strengthen its foothold in Southeast Asia's largest economy.

The ban, imposed by Indonesia's Ministry of Industry, stems from Apple’s failure to meet local regulations. Under Indonesian law, smartphones and tablets sold in the country must contain at least 40% locally sourced materials. This requirement aims to bolster domestic manufacturing and attract foreign investments.

Initially, Apple had offered to invest $10 million in a manufacturing facility in Bandung, a city southeast of Jakarta. The proposed facility would produce accessories and components. However, the ministry deemed this offer insufficient, citing Apple’s non-compliance with the required “local content level” certification. As a result, the ministry blocked the sale of the iPhone 16, which launched globally in September, and warned that any trading of the 9,000 devices already in the country would be considered illegal.

In response, Apple has significantly increased its proposed investment, now pledging $100 million over the next two years. The updated proposal reportedly includes a focus on research and development (R&D) in Indonesia, aligning more closely with the government’s expectations.

Indonesia, with a population exceeding 280 million, is the world’s fourth-most populous country and a rapidly growing market for consumer technology. For Apple, securing a strong presence in this market is critical.