Apple offers Indonesia token investment to lift iPhone ban

Following Indonesia's ban of the iPhone 16 because Apple has not invested enough in the country, the company has reportedly offered $10 million.

The threatened ban on the iPhone in Indonesia became real in late October 2024. The ban centers on Indonesia's drive to get firms to invest more in manufacturing in the country, and Apple had so far failed to reach the level it had promised.

According to Bloomberg, Apple has proposed investing almost $10 million toward its local suppliers and a factory near Jakarta. The factory makes accessories and components for Apple devices, according to unspecified sources.

Apple is said to have submitted this proposal to the Ministry of Industry, which is considering it. A decision is reportedly expected soon, but neither the Ministry nor Apple have commented.

The $10 million sum proposed, though, would not be sufficient to reach Apple's commitments. The company previously committed to investing $109.6 million in the country, and so far has instead invested $94.53 million.

Apple, like all foreign companies operating in Indonesia, requires a Domestic Content Level certificate. Apple had such a certificate, which requires 40% of components or services to be local, but let it expire.

The $10 million investment in suppliers would be a change for Apple, whose previous investment in Indonesia has been in what the country calls innovation development. This creation of Apple Academies still counts toward the Domestic Content Level.

A fourth Apple Developer Academy opened in Indonesia in April 2024.

"We're excited by the growing developer community in Indonesia," said Tim Cook at the time, "and we look forward to investing in the success of even more coders with our fourth academy in the country."