Apple offers to invest $10 million in Indonesia manufacturing to reverse an iPhone 16 ban

Apple has proposed investing almost US$10 million to make additional goods in Indonesia as it seeks to have the country’s ban on sales of its latest iPhone removed, reports the South China Morning Post.

Quoting unnamed sources, the article says the plan would involve Apple investing in a factory in Bandung, southeast of Jakarta, in partnership with its list of suppliers. The facility would purportedly make products such as accessories and components for Apple gadgets.

The South China Morning Post says Apple has submitted its proposal to the nation’s Ministry of Industry. On October 8, it was reported that Indonesia was blocking the sale of the iPhone 16 line-up because Apple hadn’t compiled with local content regulations aimed at boosting the domestic industry.

The tech giant has yet to fulfill its investment commitments in Indonesia and must renew its domestic component level (TKDN) licence, Minister of Industry Agus Gumiwang Kartasasmita said.

“Apple’s iPhone 16 cannot be sold in Indonesia yet because the extension of the TKDN certification is still pending, awaiting further investment realization from Apple,” Agus told reporters in Jakarta on October 8. The iPhone maker has only invested 1.48 trillion rupiah (about US$95 million) in Indonesia, he said, “falling short of its total commitment” of 1.71 trillion rupiah.”

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