In response to Indonesia’s recent ban on the iPhone 16, Apple has proposed a $10 million investment to appease the government and bolster its commitment to local manufacturing. The ban, effective since late October 2024, comes as Indonesia pushes tech companies to meet local investment standards, requiring foreign firms to have a minimum level of domestic content in products and services.
According to Bloomberg, Apple’s proposal focuses on supporting local suppliers and investing in a factory near Jakarta that produces accessories and components for Apple devices. This factory would mark a shift from Apple’s previous investments in educational ventures, such as its Apple Developer Academies, toward manufacturing, aligning more closely with the government’s requirements.
Indonesia’s Ministry of Industry is reviewing Apple’s proposal, but Apple’s current $10 million offer falls short of fully meeting the $109.6 million investment target set by the government. While Apple has invested $94.53 million in Indonesia, the company needs to bridge the gap to maintain its Domestic Content Level certificate, which expired after Apple failed to achieve the required 40% local content.
With the recent addition of a fourth Apple Developer Academy in Indonesia, Apple CEO Tim Cook emphasized the company’s ongoing commitment to the region. However, it remains to be seen if this new proposal will suffice to lift the iPhone 16 ban, as Apple looks to strengthen its standing in Indonesia’s growing tech market.
