Apple Commits to $1 Billion Investment to Lift iPhone 16 Ban in Indonesia
1min read The Indonesian government has stated that Apple has increased its promised investment to $1 billion in an effort to lift a ban on the iPhone 16 series.
In October, the Indonesian government announced a ban on the sale of the iPhone 16 series within the country due to Apple's failure to meet the requirement of using locally produced components.
Indonesia mandates that smartphones sold in the country must contain at least 40% locally manufactured components. Foreign companies operating in Indonesia typically collaborate with local suppliers or source components within the country to fulfill this regulation.
According to Indonesia's Ministry of Industry, Apple committed to investing 1.7 trillion Indonesian Rupiah (approximately $1.09 billion) in Indonesia last year, but only delivered 1.48 trillion Indonesian Rupiah. After the ban was introduced, Apple proposed an additional investment of $100 million in Indonesia in exchange for the government resuming sales of the new phones, but this was rejected.
Indonesia's Investment Minister, Rosan Roeslani, said on Tuesday that the government and Apple have reached an agreement, with Apple investing $1 billion as the first phase of investment. He added that the written commitment from Apple is expected to be received within a week.
"We want to see fairness," said Roeslani. "You get benefits here. You invest here and create jobs."
Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, stated last month that his top priority was to have Apple open a factory locally, following the example of other mobile phone manufacturers such as Samsung Electronics and Xiaomi.
Roeslani said that if Apple produces equipment locally, it would create a chain reaction of investment in related industries and generate more job opportunities. "What's important is how the global value chain moves here, because once it does, suppliers follow," he stated.
Indonesia has always taken a tough stance on foreign enterprises, previously announcing a ban on the sale of Google Pixel phones for the same reason of not meeting the requirement to use locally produced components.
As the largest economy in Southeast Asia and the most populous country in the region, Indonesia has a potential market of about 280 million people. Government data shows that there are over 350 million active mobile phones in Indonesia.
