The Indonesian government rejected Apple’s 100 million (IDR 1.5 trillion) investment offer to lift the iPhone 16 sales ban. Industry Minister Agus Gumiwang Kartasasmita has held an internal meeting to discuss the proposal, but government spokesman Febri Hendri Antoni Arif stated that the government wants a larger investment.
The ban is related to the Domestic Content Level (TKDN) regulation which requires smartphones to have at least 40% of locally made components. Apple previously used innovation development schemes to meet these requirements, but the investment was less than $109.6 million.
After being warned on October 11, 2024, the Indonesian government imposed a ban on the sale of the iPhone 16 from October 28. Apple’s initial bid of USD 10 million (IDR 159 billion) was deemed inadequate, and on November 19, Apple increased its bid to USD 100 million.
The investment is planned to last for two years, including the construction of research centers and development as well as developer academies in Bali and Jakarta. In addition, Apple also plans to produce AirPods Max components in Bandung starting July 2025.
However, the Indonesian government wants a greater commitment in manufacturing. “Although we have not been able to produce semiconductors, Apple can cooperate with local component suppliers,” said Febri. “This will create a multiplier effect, especially in absorbing labor in Indonesia.”
This negotiation came after Apple CEO Tim Cook’s visit to Indonesia in April 2024. During his meeting with President Joko Widodo, Cook stated that Apple would consider Indonesia as a manufacturing partner.
“We discussed the president’s desire to see manufacturing in this country, and that is something we will consider,” Cook said at the time. “The potential for investment in Indonesia is unlimited.”
