Jakarta, Indonesia Sentinel — Apple has reportedly increased its investment proposal in Indonesia to $100 million, ten times its initial offer of $10 million, as part of an effort to lift the ban on the sale of the iPhone 16 in the country.
The American tech giant’s revised investment offer follows the Indonesian Ministry of Industry’s decision in late October to block the sale of the iPhone 16, citing the device’s failure to meet the mandatory 40% local content requirement (TKDN).
Following the ban on iPhone 16 sales in late October, Apple reportedly held discussions with Indonesia’s Ministry of Industry, offering an additional $10 million investment to address regulatory concerns. However, recently Apple reportedly increase their investment offer up to ten times the initial figure.
According to a Bloomberg report, Apple has since significantly increased its proposed investment to $100 million (Rp1.57 trillion), to be implemented over two years. Initially, the company planned to invest just $10 million (Rp157 billion), partnering with a factory in Bandung, West Java, that produces accessories and components.
The source knowing the matter revealed that Apple has submitted this new proposal to the Ministry of Industry, which has yet to grant approval for iPhone 16 sales in the country. The ministry has not reached a final decision on the revised offer, the source added, chosen to be remain anonym, as reported by Bloomberg.
iPhone 16 Banned
The iPhone 16 series remain banned from sale in Indonesia as it has not received the required TKDN certification from the Ministry of Industry. This certification is necessary to demonstrate that the product meets the 40% local content requirement mandated by Indonesian regulations.
9,000 iPhone 16 Units at Risk of IMEI Blocking in Indonesia
During Apple CEO Tim Cook’s visit to Indonesia in April, the company had pledged to meet the local content requirement through investments totaling $107 million (approximately IDR 1.7 trillion). This included plans to expand the Apple Developer Academy across multiple regions in the country.
However, out of the pledged amount, only $94.8 million (Rp1.48 trillion) has been realized to date, leaving $12.2 million (Rp240 billion) outstanding. The shortfall has delayed the issuance of the TKDN certificate, effectively halting the sale of the iPhone 16 series in the Indonesian market.
The ongoing negotiations underline the challenges faced by global tech companies navigating Indonesia’s stringent local content regulations. For Apple, the stakes are high, as Indonesia represents a significant and growing market for its products.
While Apple’s increased investment offer signals its commitment to meeting Indonesia’s demands, the final decision rests with the Ministry of Industry, which continues to deliberate on the proposal.
(Raidi/Agung)
