Indonesia Demands Over $100M from Apple to Lift iPhone 16 Ban
Apple faces increasing pressure in Indonesia as the government demands a more substantial investment to lift the ongoing ban on the iPhone 16 series. The restriction, implemented last month, stems from Apple’s failure to meet its promised investment commitments under Indonesia’s strict local content rules.
Background on the Ban
Indonesia banned the sale and use of the iPhone 16 series due to Apple’s inability to meet its pledged IDR 1.71 trillion ($109 million) investment in local research and development (R&D) facilities. To address the issue, Apple initially committed $10 million, later increasing the figure to $100 million. However, this has not satisfied Indonesia’s Ministry of Industry, led by Minister Agus Gumiwang Kartasasmita, which now seeks even greater investment.
Why the Ban Persists
Under Indonesia’s Domestic Component Level (TKDN) certification, foreign companies must ensure 40% local content in their operations. This can include local manufacturing, software development, or R&D activities. Apple has so far only invested IDR 1.48 trillion ($95 million), falling short of its original commitment. This shortfall has led to an indefinite ban on the iPhone 16 and Apple Watch 10 series.
According to reports, the Indonesian government wants Apple to expand its involvement in the local supply chain by manufacturing components and accessories domestically. While Apple is reportedly exploring these options, the government has declined its latest proposal, suggesting the company needs to make larger contributions to Indonesia’s economy.
The Path Forward
Apple’s challenges highlight the complexity of operating under Indonesia’s stringent local content laws. If the company agrees to further investment, it could pave the way for not only reinstating its iPhone 16 and Apple Watch 10 series but also for deeper integration into Indonesia’s tech ecosystem.
Failure to meet these demands, however, risks long-term consequences in one of Southeast Asia’s fastest-growing markets.
