Apple offers $100mn investment in Indonesia to lift iPhone 16 sales ban

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Last month, the Indonesian government banned the sale of the iPhone 16 in the country due to Apple’s failure to meet its promised investment commitments. 

Apple had pledged to invest approximately $109 million in infrastructure and local sourcing facilities in Indonesia. 

However, the company fell short by $14 million, having only invested $95 million. This shortfall drove the government to impose a sales ban.

Apple offers ten-fold investment in Indonesia to end iPhone 16 ban

In response to the ban, Apple initially proposed an additional $10 million investment to lift it. It intended to use the funds to establish a new factory in collaboration with its suppliers.

However, a recent report from Bloomberg reveals that Apple has dramatically increased its offer, proposing a $100 million investment over two years.

This ten-fold increase highlights Apple’s efforts to regain access to the Indonesian market. 

The Ministry of Industry is currently reviewing Apple’s proposal but has urged the company to prioritize research and development (R&D) for smartphones in Indonesia.

The Indonesian government’s approach appears effective, compelling major tech companies like Apple to enhance local manufacturing efforts.

These measures aim to strengthen the country’s domestic industries and boost Southeast Asia’s largest economy.

Meanwhile, the iPhone 16 ban has left Indonesian consumers with limited options. Those who wish to buy the device must travel abroad, incurring additional costs such as a $155 import fee and travel expenses. 

For instance, purchasing the base iPhone 16 model from Singapore could cost $944 (retail price) plus $155 (import fee), excluding travel costs.

Apple is not the only company affected by these stringent regulations. The Indonesian government has also banned Google phones due to non-compliance with the requirement that devices include at least 40 percent locally sourced components. 

Indonesia is a major market for Apple. The country’s population is over 280 million, and there are more than 187 million active smartphone users. 

What are your thoughts on Apple’s offer to invest? Do you think Indonesia should take up the offer? We would love to hear your thoughts below in the comments, or via our Twitter or Facebook.