Apple faces an iPhone 16 sales ban in Indonesia due to not meeting the country’s local investment requirements. Indonesia’s Ministry of Industry recently blocked iPhone 16 sales, demanding that foreign companies invest more in local manufacturing. The decision follows Indonesia’s strict Domestic Content Level (DCL) policy, which requires 40% of components or services to be locally sourced. Apple’s initial failure to meet these criteria led to the suspension of iPhone sales in the region.
Apple Proposes New Investment in Local Manufacturing
In an attempt to resolve the issue, Apple has offered an additional $10 million investment. According to Bloomberg, this amount will be directed towards local suppliers and a factory near Jakarta, which manufactures components for Apple products. Although this proposal aims to address Indonesia’s demands, it remains short of Apple’s original commitment of $109.6 million, of which only $94.53 million has been fulfilled.
Apple’s previous investments in Indonesia primarily focused on innovation development through its Apple Developer Academies. These programs were counted towards the DCL requirements but did not involve direct contributions to local manufacturing.
Government Decision on Ban Expected Soon
The Indonesian Ministry of Industry is currently reviewing Apple’s new investment proposal, with a decision expected in the coming days. However, neither Apple nor the Ministry has publicly commented on the ongoing discussions. If approved, this additional funding could allow Apple to resume iPhone 16 sales in Indonesia, one of Southeast Asia’s largest smartphone markets.
Apple’s investment challenges highlight the complexities foreign tech companies face when navigating local policies in emerging markets. As the situation unfolds, Indonesia’s stance could influence Apple’s long-term strategy in the region.
