Apple’s $1 billion investment falls short as Indonesia maintains iPhone ban

JAKARTA: Indonesia is maintaining its ban on the sale of Apple’s iPhone 16, citing the company’s insufficient proposal to invest $1 billion in local manufacturing, which fails to meet the country’s local content requirements. The government led by President Prabowo Subianto imposed the ban in October due to Apple’s inability to comply with regulations that mandate 40 percent of the content in smartphones and tablets be sourced locally. Google’s Pixel phones also face a similar ban for the same reason.

Despite Apple’s proposal to establish a $1 billion manufacturing plant for its AirTag tracking device with the assistance of a local partner, government officials stated that this facility would not fulfill the local content requirements for iPhones.

Agus Gumiwang Kartasasmita, Indonesia’s industry minister, remarked that as of Wednesday, there was insufficient basis to issue the local content certificate for Apple products, particularly the iPhone 16, and noted that Apple’s investment proposal was inadequate.

Investment minister Rosan Roeslani commented that Apple had committed to the initial development phase of the AirTag plant, expected to be operational by early 2026. Apple has not provided a response to requests for comment.

Previously, Apple proposed investing just $10 million last year and later increased this to $100 million, which officials deemed insufficient compared to the company’s sales figures in Indonesia.

The country has consistently urged Apple to invest more, particularly since it has established four developer academies to train students and engineers in app development but lacks a manufacturing facility.

Jakarta’s demands reflect the efforts of the world’s fourth-most populous nation to leverage its significant consumer market in order to attract foreign investment. As per the industry ministry, the number of active mobile phones in Indonesia has reached 35 million, surpassing the country’s population of approximately 280 million.