Apple has reportedly proposed increasing its investment in Indonesia by nearly US$100 million to persuade the government to lift its sales ban on the iPhone 16. The investment would include a research and development center and a professional developer academy, sources familiar with the matter told media outlets.
Investment Proposal and Production Plans
In addition to the financial commitment, Apple plans to start producing accessory components, such as the AirPods Max mesh, in Bandung by July 2025. The Indonesian Ministry of Industry has been considering whether the proposed investment is competitive compared to other countries like Vietnam and India, as well as whether it is fair to other companies in the mobile device sector.
Government’s Response
Indonesia’s government had previously announced in November that the iPhone 16 could not be sold locally due to non-compliance with the country’s local content regulations. These rules stipulate that smartphones must have at least 40% of their components produced locally. Apple failed to meet these criteria for the iPhone 16.
A spokesperson from the Ministry of Industry confirmed that the iPhone 16 cannot be marketed in Indonesia unless Apple fulfills its local investment commitments to obtain the necessary certification. However, the phone can still be imported for personal use.
Broader Implications
The Indonesian government also imposed a similar ban on Google Pixel smartphones for failing to meet the local content requirement. The tech giants will need to obtain local content certification before they can resume sales in Indonesia. The government emphasizes that such regulations are designed to ensure fairness for all investors in the country’s mobile phone and tech sectors.
