Indonesia is maintaining its ban on the sale of Apple's iPhone 16, stating that the US tech giant's $1 billion investment proposal in local manufacturing is insufficient to meet the country's local content requirements. President Prabowo Subianto's government banned the latest iPhone in October due to Apple's failure to comply with a regulation mandating 40 percent of components in handsets and tablets to be sourced locally.
Google's Pixel phones also faced a similar ban for not meeting this rule. Apple proposed establishing a $1 billion facility to produce its AirTag tracking device with a local partner, but government officials indicated this week that the facility wouldn't contribute towards the local content requirement for iPhones. 'As of this afternoon, the Ministry of Industry does not have the basis to issue the local content certificate for Apple products, especially the iPhone 16,' Agus Gumiwang Kartasasmita, Indonesia's industry minister, stated on Wednesday, according to local media. He added that Apple's investment proposal was 'not enough.' On Tuesday, investment minister Rosan Roeslani mentioned Apple's 'commitment for the first stage of development' of a $1 billion AirTag facility, expected to be operational by early 2026. Apple did not respond to a request for comment. Apple initially proposed investing just $10 million last year and subsequently raised it to $100 million, with the industry ministry deeming both offers inadequate. Officials assert these figures were minuscule compared to the company's sales in Indonesia. Indonesia has consistently urged for greater investment from Apple, which operates four developer academies in the country to train students and engineers in app development but lacks a manufacturing presence. Jakarta's demands underscore how the world's fourth-most populous nation is utilizing its substantial consumer market to attract foreign investment