In October 2024, Indonesia banned the iPhone 16, citing Apple’s lack of local investments. This ban aligns with Indonesia’s effort to boost local manufacturing, where Apple reportedly fell short of its goals.
According to Bloomberg, Apple responded by proposing a $10 million investment in local suppliers and a factory near Jakarta that makes components for Apple devices. Indonesia’s Ministry of Industry is currently reviewing this proposal, though neither Apple nor the Ministry has commented yet. A decision is expected soon.
However, this $10 million offer still falls short of Apple’s pledged $109.6 million investment. So far, Apple has invested $94.53 million, leaving an additional $15 million needed to meet its commitment.
To continue operating in Indonesia, Apple and other foreign companies must hold a Domestic Content Level certificate, which requires 40% of components or services to be locally sourced. Apple’s previous certificate expired, and renewal depends on meeting these local requirements.
Previously, Apple’s investments in Indonesia focused on “innovation development,” such as establishing Apple Developer Academies. The latest academy opened in April 2024, with Tim Cook praising Indonesia’s growing developer community.
