Indonesia has declined Apple’s $100 million investment proposal aimed at lifting the ban on its latest iPhone sales in the country. Industry Minister Agus Gumiwang Kartasasmita stated that the offer did not meet “principles of fairness” when compared to Apple’s larger investments in other Southeast Asian nations.
Minister Kartasasmita says that Apple has invested around $15 billion in manufacturing facilities in Vietnam while only investing 1.5 trillion rupiah (around $94M) in Indonesia, despite higher sales volumes in the latter.
The sales ban on iPhone 16 stems from Apple’s failure to meet Indonesia’s regulations, requiring smartphones sold domestically to comprise at least 40% locally-made parts. Indonesian officials want a better investment deal and are pushing for Apple to set up a factory in the country.
The government noted that other smartphone manufacturers, such as Samsung and Xiaomi, have made significant investments in local manufacturing to comply with content requirements.
Apple CEO Tim Cook had previously expressed interest in exploring manufacturing possibilities in Indonesia during an April visit, as reported by SCMP. But no concrete plans were announced.
Indonesia turned down Apple’s proposal as part of its push to grow local manufacturing and step up in global supply chains. Now, both sides need to strike a deal that balances Indonesia’s goals for industrial growth with Apple’s plans in the region.
Apple has not yet responded to requests for comment on the matter.