Apple offers $100 million investment to Indonesian government to lift iPhone 16 ban

Last month, the Indonesian government imposed a ban on iPhone 16 sales in the country after Apple failed to meet the promised investment targets. Apple pledged to invest around $109 million (roughly 1.7 trillion rupiah) in infrastructure and local sourcing facilities in Indonesia. However, the company fell short by $14 million, having invested only $95 million (approximately 1.5 trillion rupiah) so far, leading to the ban.

Subsequently, it came to light that Apple was discussing a $10 million (roughly 158 billion rupiah) investment plan to uplift the iPhone 16 sales ban. The proposed investment was expected to be used towards setting up a new Apple factory in partnership with its suppliers. Now, a fresh report suggests that Apple has increased the investment by ten-fold, with the offer now standing at $100 million to un-ban iPhone 16 sales.

Bloomberg reports that Apple has submitted a plan to the Indonesian government to invest $100 million over the course of two years. It is claimed that the Ministry of Industry of Indonesia hasn't decided on this new investment plan. The report adds that the Ministry of Industry has advised Apple to "focus more on research and development for its smartphones in the country."

By the looks of it, the Indonesian government's tactics are yielding results, as Southeast Asia’s largest economy has successfully managed to put pressure on tech giants like Apple to expand local manufacturing, which, in turn, will help bolster domestic industries.

With the sales ban still in place, Indonesians who want to purchase iPhone 16 models have to fly overseas to get one. Beyond paying the full retail price, they also have to pay an import fee, which is $155. For example, purchasing the base iPhone 16 model from Singapore would cost Indonesian buyers $944 (base price) + $155 (import fee), plus travel expenses.

Notably, Apple isn't the only one affected by such restrictions. After banning iPhone 16 sales in the country, the Indonesian government also banned the sale of Google phones due to non-compliance with the requirement that devices should contain at least 40% locally sourced components.