Apple reportedly offers $100 million investment to end iPhone 16 sales ban in the world’s 4th-most-populous country

Indonesia has demanded that Apple alter its offer to prioritize research and development for its smartphones in the country.

Apple has reportedly offered to invest $100 million in Indonesia to reverse a ban on iPhone 16 sales in the world’s fourth-most populous nation.

Bloomberg reported, citing people familiar with the matter, that the Cupertino-based tech giant has made the offer as it seeks to break further into the growing tech market in Southeast Asia’s biggest economy.

Indonesia’s Ministry of Industry last month blocked Apple from selling its iPhone 16, which first launched in September, for failing to comply with regulations.

Apple had initially proposed a $10 million payment for a factory in Bandung, located southeast of Jakarta, the country’s current capital, Bloomberg reported. The factory would manufacture accessories and components.

The southeast Asian country requires that at least 40% of the material in smartphones and tablets sold in stores nationally come from Indonesian producers — a measure to protect local producers and attract foreign investment.

The ministry said in an October statement that the iPhone 16 could not be imported for sale because Apple hadn’t fulfilled its investment commitment to obtain “local content level” certification. It said if the 9,000 iPhone 16s that had already entered the country were traded, they would be classed as illegal.

As the world’s fourth-most populous nation with over 280 million citizens, Indonesia is an increasingly important Apple market.

Bloomberg reported that Apple’s new proposal would see an investment of $100 million over the next two years. They added that the ministry is demanding the iPhone maker shift its offer to prioritize research and development for its smartphones in Indonesia.

The ministry hasn’t yet made a final decision on Apple’s latest proposal, the people added.

Apple and Indonesia’s Ministry of Industry did not immediately respond to requests for comment from B-17.