Indonesia rejects Apple’s $100 Million Investment Offer, Insists On iPhone 16 Sales Ban

Indonesia rejects Apple’s Investment: Indonesia has dismissed a $100 million investment proposal from Apple aimed at lifting a sales ban on the iPhone 16, citing it as insufficient to meet the country’s local content requirements.

The ban, which took effect in November, mandates that smartphones sold domestically must include at least 40% locally-made components, a policy designed to bolster domestic manufacturing and supply chains.

Indonesia Rejects Apple’s Investment

Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, stated that Apple’s proposal needs to align with fairness principles, particularly when compared to the company’s more significant investments in Vietnam and Thailand, the Bangkok Post reports.

We have done an assessment, and this proposal does not meet principles of fairness,” Agus said.

The minister also compared Apple’s investment with that of its competitors in the Indonesian market. 

He revealed that Samsung and Xiaomi have invested IDR 8 trillion and IDR 55 trillion, respectively, to manufacture their devices locally. 

“We want Apple to return to do business here but we need a fair resolution,” Kartasasmita stated, emphasizing the need for equitable investment from the tech giant.

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Indonesia Demands For Additional Investments 

Furthermore, Minister Agus disclosed that Apple still has an outstanding $100 million investment commitment that was originally set to be fulfilled by 2023. 

Additionally, the Indonesian government is pushing for additional investments to extend through 2026. 

The ministry plans to invite Apple representatives to Indonesia for negotiations to discuss the situation further.

Agus emphasized that Apple must align its investments with the country’s expectations, noting that similar efforts in neighboring countries make Indonesia’s demands reasonable.