Apple to Invest $100M to Lift Indonesia's iPhone 16 Ban

Apple Inc. has reportedly increased its planned investment in Indonesia nearly tenfold, aiming to resolve a ban on the sale of its iPhone 16 in the country, according to sources familiar with the matter.

The proposed investment now stands at nearly $100 million over two years, a significant increase from the previously reported $10 million. Earlier plans included setting up a facility in Bandung, southeast of Jakarta, focused on manufacturing components and accessories.

However, following Apple's revised proposal, Indonesia’s Ministry of Industry has requested the company to reallocate its investment efforts towards advancing smartphone research and development in the country. This comes after the Ministry blocked the iPhone 16 sales permit in October, citing non-compliance with the regulation that mandates 40% local content for smartphone components.

Negotiations between Apple and Indonesian officials have seen setbacks. After Apple executives initially traveled to Jakarta for discussions, a meeting with Minister Agus Gumiwang Kartasasmita was canceled unexpectedly, leaving the executives to meet with the Ministry's Director General instead.

According to the Ministry, Apple’s existing contribution—primarily through its Developer Academy—totals approximately IDR 1.5 trillion (around $95 million), falling short of the required IDR 1.7 trillion. A similar lack of investment has also led to restrictions on the sale of Google’s Pixel smartphones in Indonesia.

Apple, like many multinational companies, does not operate its own factories in Indonesia. Instead, it collaborates with local partners for manufacturing components and finished products. Increasing its investment could offer Apple greater access to Indonesia’s vast market of 278 million people, more than half of whom are under 44 years old and avid adopters of new technology.