Indonesia Rejects Apple’s $100 Million Offer to End iPhone 16 Ban

In a significant move, the Indonesian government has rejected Apple’s offer of $100 million to resolve the ongoing iPhone 16 sales ban in the country. This decision came after Apple’s failure to meet local regulations and investment promises, sparking a confrontation with Indonesian authorities.

The dispute began in October when the Ministry of Industry imposed a ban on the iPhone 16 series after Apple failed to comply with Indonesia’s Tingkat Komponen Dalam Negeri (TKDN) regulation, which requires foreign companies to localize at least 40% of their products. Apple had committed to a $109 million investment to meet these requirements but had only invested about $95 million by the deadline.

In response, Apple initially proposed a modest $10 million investment, which was later increased to $100 million. However, Indonesian officials indicated that this was insufficient. Industry Minister Agus Gumiwang Kartasasmita, after meeting with Apple representatives, emphasized that a more substantial investment was needed. The government seeks Apple to contribute more significantly to the development of the local manufacturing sector, which includes building research centers and integrating local companies into Apple's global supply chain​.

.Apple’s $100 million offer was aimed at local research and development, specifically for smartphone technology. However, Indonesia has insisted that such investments should go beyond R&D and include contributions to the country’s broader economic and technological goals. The Indonesian Ministry of Industry’s spokesperson, Febri Hendri Antoni Arif, suggested that Apple could enhance its local manufacturing efforts by working with Indonesian companies to supply accessories, chargers, and other components​.

.For now, the ban on the iPhone 16 series and Apple Watch 10 series remains in place until Apple meets Indonesia’s expectations. The Indonesian government is keen on ensuring that foreign investments contribute to the long-term growth of the country’s manufacturing and technology sectors, especially in AI and Industry 4.0​.