Apple to Invest $100 Million in Indonesia to Lift iPhone 16 Ban

Apple plans to invest $100 million in Indonesia to lift the ban on the iPhone 16, aiming to bolster its market presence in this rapidly growing region.

Apple Pledges $100 Million to Lift Indonesian iPhone 16 Ban

In an effort to reverse the recent ban on the iPhone 16 in Indonesia, Apple has committed a substantial $100 million investment, reports The Wall Street Journal. The tech giant plans to establish a manufacturing plant within the nation.

A Tenfold Increase in Proposal

Earlier this month, Apple’s initial offer of $10 million was made to counteract the ban. However, their latest proposal is ten times that amount, underscoring the strategic importance of Indonesia, a country with nearly 280 million potential smartphone users. The Indonesian Ministry of Industry is set to review Apple’s proposal this week.

Failure to Meet Local Investment Threshold

The root of the issue stems from Apple not meeting a local investment threshold of about $15 million. Indonesia mandates that certain devices sold within its borders must comprise at least 40% domestic content, achievable through local materials, manufacturing plants, or employing local workers.

Despite previous investments totaling around $94 million in Indonesia through various means, Apple fell short of preventing the ban. The prohibition also affects other recent Apple products like the Apple Watch Series 10, but does not impact older Apple devices, which are still available for purchase in the country.

A Manufacturing Plant: A Major Asset for Indonesia

While Apple has established several developer academies across Indonesia, a full-scale manufacturing plant would be a significant boon for the country. Notably, competitors such as Samsung and Xiaomi have already set up factories in Indonesia.