Even $1 billion & a manufacturing plant aren't enough to get iPhone 16 unbanned in Indonesia

Recently, it was reported that Apple may be close to getting the iPhone 16 unbanned in Indonesia. However, the new year doesn"t seem to have brought good news for the Cupertino-based company. According to the latest report, Apple is still banned from selling iPhone 16 in Indonesia, despite its offer of a $1 billion investment plus a manufacturing plant on the island of Batam.

It all started with the Indonesian government accused Apple of not meeting its promised investment targets, and imposed a ban on the sale of iPhone 16 in the country. To fix this, Apple proposed an investment plan of $10 million, which was rejected. Later, Apple made another unsuccessful offer to invest $100 million. But even after proposing to invest a billion dollars and establish a manufacturing plant, which aligned with the Indonesian government"s demands, the iPhone 16 ban remains in place.

The Indonesian government has now revised its demands and insists Apple set up a factory to manufacture iPhone 16 parts in the country, as Apple"s offer of producing AirTag in Indonesia "doesn"t count as locally-made iPhone part." Minister Agus Gumiwang Kartasasmita said, "There is no basis for the ministry to issue a local content certification as a way for Apple to have the permission to sell iPhone 16 because (the facility) has no direct relations." He further added that the government "would only count phone components."

It seems the Indonesian government is determined to secure a stronger commitment from Apple, ensuring the company has a solid foothold in the country to contribute consistently to the Indonesian economy. For now, iPhone fans in Indonesia will still need to fly overseas to purchase an iPhone, with the closest destination being Singapore.

Source: Reuters

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