Apple proposes $1B investment in Indonesia to lift iPhone ban
In a bid to get its iPhone 16 sales unbanned in Indonesia, Apple has pitched a $1 billion investment plan to the Indonesian government. The two parties have settled on the amount as a first phase of investment, Indonesia's Investment Minister Rosan Roeslani said. He expects to receive a formal commitment letter from Apple in a week's time. "We want to see fairness," Roeslani said. "You get benefits here. You invest here and create jobs."
Apple's investment history and future expectations in Indonesia
The proposed $1 billion investment is a major jump from Apple's previous offers of $100 million and an initial bid of just $10 million for a factory in Bandung. In 2023, Apple had promised to invest IDR 1.7 trillion ($107 million) for developer academies across Indonesia but missed by about $10 million. Roeslani has asked Apple to do better than Vietnam, where the tech giant invested roughly $15 billion into manufacturing facilities.
Indonesia's stance on Apple's local manufacturing
The iPhone 16 sales ban was imposed as Apple failed to comply with Indonesia's domestic content requirements for smartphones and tablets. Industry Minister Agus Gumiwang Kartasasmita, who imposed the ban, has said his main goal is to convince Apple to set up a local plant. Roeslani believes if Apple starts local production, it could trigger further investments in related sectors and job creation.
Indonesia's strict policies to protect domestic industry
Indonesia has a history of imposing strict measures to protect its homegrown industry and draw more investment. The government had previously forced TikTok to split its shopping feature from its social media platform, to protect its retail sector from cheap Chinese goods. It also banned the export of raw materials such as nickel, pushing companies to process minerals locally and set up domestic battery plants.
