The Indonesian government is pushing Apple for a higher investment than its recently proposed $100 million before it will consider lifting its ban on iPhone 16 sales in the country, according to statements from government officials on Thursday.
Industry minister Agus Gumiwang Kartasasmita has held internal meetings to discuss Apple's proposal, but a ministry spokesperson reportedly said that the government expects more substantial commitments from the company.
"From the government's perspective, of course, we want this investment to be larger," Febri Hendri Antoni Arif told Antara News. The government is particularly interested in having Apple source components from domestic suppliers, suggesting this would create a "multiplier effect" for local employment.
Apple's current $100 million proposal was a significant increase from its initial $10 million offer earlier this month, and includes plans for research and development facilities and developer academies in Bali and Jakarta over a two-year period. The proposal also outlines plans to manufacture AirPods Max ear cup mesh components in Bandung starting July 2025.
The ongoing negotiations follow Indonesia's October 28 ban on iPhone 16 sales, implemented after authorities determined Apple had not met the country's requirement for 40% domestic content in smartphones. The government also claims Apple has invested only $95 million through developer academies, falling short of a previously promised $109.6 million commitment.
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