Apple recently boosted its proposed investment in Indonesia from $10 million to $100 million as it attempts to convince Indonesian officials to lift their ban on iPhone 16 sales. However, the Indonesian government wants to see more money on the table before agreeing to lift the ban.
iPhone 16 sales in Indonesia were blocked in October, after the government determined that Apple had not met the country’s 40% domestic content requirement for smartphones. The government also claims Apple fell short of a previous promise to invest 1.7 trillion rupiah through developer academies, instead investing only 1.5 trillion rupiah.
Indonesia represents a significant piece of Apple’s smartphone market, as the country has a population of 280 million, who own around 354 million active mobile phones.
Industry minister Agus Gumiwang Kartasasmita has held internal meetings to discuss Apple’s proposal, but a ministry spokesperson now says that the government expects a larger financial commitment from the company.
“From the government’s perspective, of course, we want this investment to be larger,” Febri Hendri Antoni Arif told Antara News. The government is particularly interested in having Apple source components from domestic suppliers, suggesting this would create a “multiplier effect” for local employment.
Apple raised its proposal from a initial offer of $10 million to $100 million earlier this month, which includes plans for opening research and development facilities and developer academies in Bali and Jakarta over a two-year period. Apple also say it plans to manufacture AirPods Max ear cup mesh components in Bandung starting July 2025.
Indonesia banned iPhone 16 sales in the country on October 28, after officials determined Apple had not met the country’s requirement for 40% domestic content in smartphones. The government also claims Apple fell short of a previous promise to invest 1.7 trillion rupiah ($109.6 million US) through developer academies, instead investing only 1.5 trillion rupiah ($95 million US).
