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Indonesian government considers Apple's increased $100 million investment offer in country, but reportedly wants more before lifting iPhone 16 ban English: range.
“Industry Minister Agus Gumiwang Kartasasmita held an internal meeting to discuss the proposal,” government spokesman Febri Hendri Antoni Arief told local news agency Antara News. “From the government’s perspective, of course we want this investment to be bigger.”
The issue centers on Indonesia’s law requiring smartphones to contain at least 40% locally made components. That domestic content law can be relaxed through various methods, including innovation schemes that Apple has previously favored.
However, Apple’s previous investment was less than the $109.6 million it had committed to make. After Apple warned on October 11, 2024, that it could face a ban, Indonesia blocked all sales of the iPhone 16 from October 28.
On November 5, Apple was reported to have offered a ridiculously higher investment of $10 million. It then increased that offer tenfold on November 19.
The proposed $100 million in additional investment was reportedly to be made over two years, and would be used primarily for an R&D center and developer academies in Bali and Jakarta.
There was at least one manufacturing element, however, as Apple was said to be planning to produce the mesh components of the AirPods Max in Bandung from July 2025.
However, Indonesia appears to want a greater manufacturing commitment from Apple.
“While we cannot make semiconductors yet, if Apple needs them, they could source components from domestic suppliers,” Febri Hendry spokesman Antoni Arif continued. “Of course, we would be happy to support that.”
“It would create a multiplier effect,” he said, “especially in terms of absorbing labor in Indonesia.”
The ban and subsequent talks followed Tim Cook's visit to the country in April 2024. Cook met with then-Indonesian President Joko Widodo and promised that Apple would consider the country as a manufacturing partner.
“We've talked about the president's desire to see manufacturing in the country, and that's something we'll look at,” Cook said at the time. “The investment opportunities in Indonesia are endless.”
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