Apple reportedly offers $100 million to reverse Indonesia’s iPhone 16 ban

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Apple has significantly raised its investment proposal for Indonesia, increasing it nearly tenfold, as reported by sources familiar with the situation. This move represents the US technology giant’s latest effort to convince the Indonesian government to lift its sales ban on the iPhone 16.

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The revised proposal entails an investment of nearly $100 million in Southeast Asia’s largest economy over a two-year period, according to these sources, who requested anonymity due to the confidential nature of the discussions.

Previously, Apple had planned to invest approximately $10 million in a factory for manufacturing accessories and components in Bandung, a city located southeast of Jakarta, as reported by Bloomberg News.

Following Apple’s enhanced offer, Indonesia’s Ministry of Industry, which recently denied a permit for the sale of the iPhone 16, is now insisting that the tech giant modify its investment strategy to emphasize research and development for its smartphones within the country. The Ministry has yet to reach a final decision regarding Apple’s latest proposal.

Following Apple’s initial proposal, the ministry requested a meeting between senior executives of the company and Minister Agus Gumiwang Kartasasmita. However, upon their arrival in Jakarta, Apple’s executives were informed that the minister was unavailable, necessitating a meeting with the ministry’s director-general instead.

This new investment proposal from Apple emerged after the Ministry of Industry recently prohibited the sale of the iPhone 16, citing that the local unit of the US company had not fulfilled the 40 percent domestic content requirement for smartphones and tablets.

The Indonesian government reported that Apple has invested only 1.5 trillion rupiah ($95 million) in the country through developer academies, which is below the pledged amount of 1.7 trillion rupiah. Additionally, the Southeast Asian nation has also restricted the sale of Alphabet Inc.’s Google Pixel phones due to a similar deficiency in investment.

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