Indonesia rejects Apple's US$100 million investment offer

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JAKARTA: Indonesia has rejected an Apple US$100 million investment proposal aimed at lifting a ban on iPhone 16 sales, saying it lacks the "fairness" required by the government.

Indonesia last month prohibited the marketing and sale of the iPhone 16 model over Apple's failure to meet local investment regulations requiring that 40 per cent of phones be made from local parts as the country seeks to boost investments from giant tech companies.

But Industry Minister Agus Gumiwang Kartasasmita said Apple had not met the government's requirements, especially when compared with the tech giant's investments in other countries. He said the ministry urged Apple to immediately set up a production facility or factory in Indonesia"based on the fairness principles" so the company does not have to file an investment scheme proposal every three years.

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