Apple is reportedly increasing its investment commitment in Indonesia from $10 million to $100 million to lift a sales ban on its iPhone 16 model. The tech giant is reacting to Indonesia’s tough local content rules.
The conflict arose when Apple failed to meet Indonesia’s Domestic Content Level requirement, falling short of the $109.6 million threshold needed for certification. This led to a ban on iPhone 16 sales in the country, one of Southeast Asia’s largest markets.
To address the issue, Apple has proposed a $100 million investment spread over two years. This increase is from its initial supplementary offer of $10 million on November 5.
The Indonesian Ministry of Industry remains undecided on Apple’s proposal. Reports suggest that the ministry is pushing Apple to focus this funding on research and development rather than existing manufacturing efforts.
This situation is part of a larger policy agenda under President Prabowo Subianto, continuing his predecessor’s push for international firms to increase local investments and promote domestic industry. Similar measures have affected other tech companies, including Google and ByteDance.
This case could majorly impact Apple and other global companies eyeing investments in Indonesia.
Both Apple and the Indonesian government have yet to make official statements on the matter.
More here.