Apple offers to invest 100 million dollar in Indonesia to lift iPhone 16 ban

Apple plans to invest $100 million in Indonesia to lift a ban on its latest products, including the iPhone 16, due to a local content requirement. This move aims to boost local manufacturing and comply with Indonesian regulations.

Apple is making a big move to bring back its iPhone 16 to Indonesia. The tech giant has offered the country a $100 million investment to end a ban on its latest products, including the Apple Watch Series 10. The ban was put in place because Apple didn’t meet a government rule that requires at least 40% of the components or manufacturing for certain products to come from within Indonesia.

Why was the ban Imposed?

Indonesia has a law aimed at boosting its economy and creating local jobs. It requires companies selling certain electronic products to meet a 40% “domestic content” requirement. This can be done by using locally sourced materials, employing Indonesian workers, or setting up manufacturing facilities in the country.

Apple had already invested $94 million in Indonesia through various initiatives, including opening developer academies to train local tech talent. However, it wasn’t enough to meet the threshold, as the company was reportedly $15 million short. As a result, Indonesia banned the sale of the iPhone 16 and other new Apple devices. Older models, like the iPhone 14, are still available in stores.

Apple’s $100 million plan

Initially, Apple offered $10 million to resolve the issue, but the government rejected the proposal. Now, the company has come back with a much larger offer—$100 million—to set up a manufacturing plant in Indonesia. This factory would allow Apple to meet the 40% domestic content requirement and comply with local regulations.

The Indonesian Ministry of Industry will review Apple’s latest proposal this week. If approved, the manufacturing plant could bring significant benefits to the country, including new jobs and economic growth.

Why Indonesia is important to Apple

Indonesia is a key market for Apple, with a population of 280 million people and a growing demand for smartphones. However, the ban gives an advantage to competitors like Samsung and Xiaomi, which already have factories in the country and can sell their latest devices without restrictions.

By committing to build a local manufacturing plant, Apple is not only working to lift the ban but also signaling its long-term interest in Indonesia. If the deal goes through, it could be a win-win: Apple gets access to a massive market, while Indonesia benefits from the economic boost.

This situation highlights the challenges global companies face in meeting local rules while staying competitive in fast-growing markets like Indonesia.