Apple now needs $1 billion to lift iPhone 16 ban in Indonesia
If Apple complies, it could lead to a stronger partnership with the country.
Apple and Indonesia have been locked in a tense back-and-forth ever since the Indonesian government imposed a ban on iPhone 16 sales. The reason given was that Apple failed to meet Indonesia's local content requirement, which mandates that smartphones sold in the country must include at least 40% locally sourced parts. The iPhone 16 didn’t make the cut, prompting the government to halt its sales.
But Apple didn’t back down easily. In an attempt to get the restriction lifted, the company first offered $10 million, but Indonesia swiftly rejected the offer, deeming it insufficient. Apple then raised its bid to $100 million, but that, too, was turned down.
The Indonesian government argued that these proposals didn’t address the core issue which is, contributing to the local economy and strengthening the country’s supply chain. Instead of simply paying up, Indonesia suggested Apple focus on building manufacturing facilities within Indonesia to meet the country's long-term goals.
Louis Eriakha
Now, the stakes are even higher as Indonesia’s Investment Minister, Rosan Roeslani, recently announced that Apple would need to commit $1 billion in investments within just one week to lift the iPhone 16 sales ban.
The Indonesian government wants Apple to not only meet the current threshold but to also establish a long-term presence by investing in local production, which would create jobs and bolster Indonesia’s position in the global supply chain.
Apple has had a presence in Indonesia since 2018, launching developer academies to nurture local talent, but the company has not yet built manufacturing plants there and this is precisely what the government is now pushing for, adding pressure on Apple to take the next step. Apple has faced challenges in Asia before—like when a major factory in India caught fire—so this latest hurdle in Indonesia adds another layer of complexity to its regional strategy.
We’ll soon find out whether Apple will agree to Indonesia’s $1 billion investment demand. If Apple complies, it could lead to a stronger partnership with the country, unlocking new opportunities for local manufacturing and expanding its presence in Southeast Asia.
On the other hand, if Apple refuses to meet the demand, the sales ban could persist, and the company may face ongoing challenges in expanding its footprint in the region.
