According to Indonesia iPhone ban news, Apple Inc. has proposed a $10 million investment in Indonesian manufacturing operations in an attempt to lift a recent sales ban on its latest iPhone 16 series and Apple Watch Series 10. The ban was imposed in October, affects Apple’s ability to sell and distribute these devices within Indonesia.
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Indonesia banned the sale and usage of the iPhone 16 series and the Apple Watch Series 10. The International Mobile Equipment Identity certification, a prerequisite for selling devices in Indonesia, was withheld by the Ministry of Industry.
The Domestic Component Level certification requires that foreign companies use at least 40% locally sourced components in devices sold within Indonesia.
These rules apply not only to Apple but also to other tech companies including Google, which faced a similar ban for its Pixel phones.
The local content rules reflect Indonesia’s drive for pseudo protectionism, a term some analysts use to describe policies that indirectly favor local manufacturing while deterring foreign investors.
According to Indonesia iPhone ban news, Apple initially committed to investing approximately IDR 1.71 trillion in Indonesia but fell short, investing only around IDR 1.48 trillion. This shortfall is seen as a primary reason for the Ministry of Industry’s decision to withhold certification for the iPhone 16 series.
Apple had already established four developer academies in Indonesia, providing training to students and engineers, though the government continues to press for more investments in physical infrastructure.
Apple has proposed investing $10 million in a new manufacturing facility located in Bandung, southeast of Jakarta. This facility would focus on producing accessories and components for Apple devices in collaboration with a list of Apple’s suppliers.
According to Indonesia iPhone ban news, Apple’s proposal has been submitted to the Ministry of Industry and a decision is expected soon on whether this investment will allow for the reinstatement of iPhone 16 sales in the Indonesian market.
Indonesia, with its 280 million residents and approximately 354 million active mobile phones. The iPhone 16 was banned in Indonesia due to Apple’s failure to meet the mandated 40% local content requirement, a policy intended to strengthen local production capacities by compelling global corporations to contribute to Indonesia’s economy.
These domestic content requirements were also enforced under the administration of former President Joko Widodo and have become a hallmark of the government’s strategy to reduce dependency on imports and create more local jobs.
Prabowo’s administration is pushing even harder for these policies to be adhered to impacting not only Apple but other tech companies like Google and ByteDance.
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According to Indonesia iPhone ban news, Apple has a huge presence in Indonesia, with prior investments totaling 1.5 trillion rupiah for initiatives such as developer academies. However, this falls short of its earlier commitment of 1.7 trillion rupiah.
This prior investment history has put Apple under pressure to meet its commitments if it wants to sell its latest products in the Indonesian market.
The proposed investment of $10 million is planned at a manufacturing plant in Bandung, focusing on producing components and accessories for Apple’s products.
Through this Indonesia iPhone ban news, Apple hopes to secure approval from Indonesia’s Ministry of Industry by complying with the domestic content requirement.
If successful, this would allow the sale of the iPhone 16 and future models in Indonesia.
Apple’s proposal is under review by the Indonesian Ministry of Industry. While neither Apple nor the Ministry has commented, the negotiations could change the final structure of the deal, with the Ministry expected to reach a decision soon.
Indonesia, with a population of 278 million offers a consumer base especially since more than half of the population is under 44.
According to Indonesia iPhone ban news, Indonesia also imposed restrictions on Google’s Pixel phones due to insufficient local investment.
ByteDance had to invest $1.5 billion in a joint venture with local e-commerce Tokopedia to continue operations within the country.
According to Indonesia iPhone ban news, Indonesia’s manufacturing sector has seen a decline from 21.1% of the GDP in 2014 to 18.7% in recent years.
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 "Indonesia iPhone Ban News: Apple’s $10 Million Investment to Lift Ban 5")
