Indonesia rejects Apple's $100 million bid to lift the iPhone 16 ban

"Industry Minister Agus Gumiwang Kartasasmita held an internal meeting to discuss the proposal," government spokesperson, Febri Hendri Antoni Arif, told local news agency Antara News. "From the government's perspective, of course, we want this investment to be larger."

The issue concerns Indonesia's law that smartphones must contain at least 40% of locally manufactured components. This Domestic Content Level law can be assuaged by various methods including innovation development schemes, which Apple has previously preferred.

Apple's previous investment, though, amounted to less than the $109.6 million it had committed. After warning Apple on October 11, 2024 that it could face a ban, Indonesia then blocked all iPhone 16 sales from October 28.

On November 5, it was reported that Apple offered a derisory $10 million more in investment. Then on November 19, it upped that offer tenfold.

Reportedly, that proposed $100 million in further investment was to take place over two years. It would chiefly be used for a research and development center, and developer academies in Bali and Jakarta.

There was at least one manufacturing element, however, as Apple is said to have planned making AirPods Max mesh components in Bandung from July 2025.

It appears that Indonesia wants more of a manufacturing commitment from Apple, however.

"While we are not yet able to produce semiconductors, if Apple requires them, they could source components from domestic suppliers, continued spokesperson Febri Hendri Antoni Arif. "Of course, we would be eager to support this."

"This would create a multiplier effect," he said, "particularly in terms of labor absorption in Indonesia."

The ban and the subsequent negotiations follow Tim Cook's visit to the country in April 2024. Cook met with Indonesia's then President Joko Widodo, and promised Apple would consider the country as a manufacturing partner.

"We talked about the president's desire to see manufacturing in the country, and it's something that we will look at," Cook said at the time. "The investment ability in Indonesia is endless."