Apple will now invest $100 million in Indonesia to lift iPhone 16 ban

Indonesia has been tough on international phone makers recently, outrightly banning the sales of two flagship phones from two of the world’s biggest phone producers: The Google Pixel from Google and the iPhone 16 lineup from Apple.

To get the ban on its latest device lifted, Apple offered a $10 million investment in the country, but the Indonesian government did not budge. And now, Apple has increased that offer tenfold and is reportedly looking to invest $100 million in the Indonesian economy.

This growth was fueled by the strategic restocking of channels by vendors before the Ramadan season and strong demand across all price segments.

The $10 million initially offered by Apple was slated for a factory building in Bandung, located southeast of Jakarta. The factory would then be in charge of producing Apple accessories and components, helping the company fulfil the regulatory requirement of having at least 40% local production and 1.71 trillion rupiahs ($108.7 million) in investments in the Indonesian economy.

But, since the Indonesian government has reportedly not responded to Apple, the new offer would see Apple invest $100 million in the country’s economy over two years.

Now, the Ministry of Industry in Indonesia has not yet responded, but, reports show that the ministry has urged Apple to make its investment plans focus more on research and development for its smartphones in the country.

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Right now, there hasn’t been an official word from Apple or Indonesia’s Ministry of Industry. But, given Apple’s effort and promise to bring its devices back as soon as possible, it will not be surprising if the Ministry delivers an answer quickly.

On the other hand, tech giant Google, which also faced a similar ban, has not officially spoken about its efforts to reverse the ban on the Google Pixel phone in the country.

Indonesia understands the value of its market to global tech companies and isn’t afraid to use its influence. The bans on Google and Apple, along with past regulatory actions, show the country’s determination to secure foreign investments.

With over 200 million people, Indonesia is a powerful market in Asia, and its government is clearly willing to use its regulatory power to ensure foreign companies make meaningful investments in the local economy.