Apple to increase Indonesia investment to appeal iPhone 16 ban

Indonesia hasn't budged on Apple's $10 million investment offer to lift an iPhone 16 sales ban, so the company has reportedly increased its offer to $100 million.

Indonesia Ministry of Industry blocked Apple's ability to sell the iPhone 16 in the country after falling short of a $109.6 million commitment to invest. Apple reportedly offered an additional $10 million investment on November 5, but that appears to have not been enough to get the sales ban lifted.

According to a report from Bloomberg, Apple has allegedly offered to invest almost $100 million into Indonesia over the next two years. The Ministry of Industry hasn't made a decision yet, but it is reportedly demanding Apple rethink its investment plans to focus on R&D.

The iPhone 16 ban and investments from Apple stem from a rule that requires a valid Domestic Content Level certificate to sell products like iPhones in Indonesia. Apple had one until it fell short of the 40% investment threshold by investing $94.53 million instead of the needed $107.6 million or so.

Previous investments went to manufacturing companies and the creation of Apple Academies. A fourth Apple Developer Academy opened in Indonesia in April 2024.

No official word from Apple or the Indonesian Ministry of Industry has been released. If Apple invests the new $100 million offer satisfactorily, the iPhone 16 ban will likely be lifted.

3 Comments

jibeng 1 comment · New User

About 1 month ago

To put things into perspective, Indonesia is the fourth most populous country in the world, just behind the United States. That’s why Apple has been trying desperately to lift the ban.

nubus 627 comments · 8 Years

jibeng said:

To put things into perspective, Indonesia is the fourth most populous country in the world, just behind the United States. That’s why Apple has been trying desperately to lift the ban.

Indeed. Indonesia could become a global production hub if politics can be kept moderate and deliver long term stability for investments.

I like the way that after Apple also in Indonesia "forgot" to contribute locally. But this time it got blocked without the 10-15 year delay we have seen in EU. Would be fun to have EU demand 40% local content and hit just as fast. It certainly would generate a lot of comments here.