The iPhone 16 series has been available for users across the globe for over a month now. But, Apple is facing major trouble in the Indonesian market. The government of Indonesia recently banned sales of the iPhone 16 lineup and Apple Watch Series 10 after the company failed to comply with local investment requirements. Now, Indonesia is expecting a $1 billion investment from Apple to reverse the ban imposed on the iPhone 16 sales.
Indonesia wants a $1 billion investment from Apple to lift the iPhone 16 sales’ ban
Indonesia initially banned the sales of the iPhone 16 series because it requires products sold in the country to include at least 40 percent locally-made parts. Since Apple doesn’t have a manufacturing plant in the country, it couldn’t meet that requirement.
Indonesia’s investment minister, Rosan Roeslani, says that the government wants a $1 billion investment commitment from Apple within a week. He also adds that Apple should invest more in the future if it wants to make Indonesia part of its supply chain.
A part of Roeslani’s statement reads, “Whoever benefits from the sales must invest here, create jobs here. What’s important is how the global value chain moves here, because once it does, suppliers follow.”
The government had previously rejected Apple’s investment offer
Apple had previously proposed a $100 million investment to set up a plant to manufacture accessories and components to reverse this ban. According to Reuters, the government rejected it saying it didn’t meet the “principles of fairness.”
Although the Cupertino tech giant doesn’t have a manufacturing plant in Indonesia, it has had application developer academies since 2018 in the country. It was one of the main reasons Indonesia didn’t stop the sales of previous iPhone models. Those iPhones are still selling in the region, and the government doesn’t seem to stop it.
Apple has yet to make a public announcement on this matter. Will it commit the required investment or plans to sideline its products from the Indonesian market? It will be interesting to see how the tech giant tackles this challenge.