Indonesia Rejects Apple's $100 Million Proposal, iPhone 16 Sales Ban Stands

The Indonesian government deems Apple's investment insufficient to meet local content laws and seeks greater commitments to lift the ban.

Indonesia's Ministry of Industry has rejected Apple's $100 million investment proposal for a local accessory and component factory, citing it as inadequate under local fairness and content requirements.
Sales of the iPhone 16 remain banned in Indonesia due to the country's regulation requiring 40% of smartphone components or labor to be locally sourced.
Officials highlighted Apple's smaller investments in Indonesia compared to larger commitments in Vietnam and Thailand, as well as rival companies like Samsung and Xiaomi.
Indonesia is urging Apple to fulfill a $10 million investment obligation from 2023 and make stronger commitments through 2026, including the establishment of a manufacturing facility.
The government plans to invite Apple for further negotiations, emphasizing the importance of equitable foreign investment to boost Indonesia's domestic manufacturing sector.