Apple is now offering to invest $100 million in Indonesia to lift the country’s iPhone 16 sales ban. This represents a significant increase over the company’s original $10 million offer, according to a new Bloomberg report.
The new offer would see Apple invest $100 million over two years in Indonesia. In return, the country would suspend its iPhone 16 sales ban, which went into effect shortly after the device was released as it doesn’t meet a specified quota of locally-made components. The previous $10 million offer would have seen Apple invest in a new factory near Jakarta to assemble components and accessories for the first time in the country.
However, Indonesia appears likely to reject Apple’s newest offer. Bloomberg reports that the country now demands a significant chunk of the proposed investment be directed towards iPhone research and development rather than manufacturing. The Ministry of Industry has yet to make a final decision regarding Apple’s proposal, meaning that the iPhone 16 sales ban will likely remain in place for some time.
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The ministry invited senior Apple executives for a meeting with Minister Agus Gumiwang Kartasasmita in Jakarta. However, the meeting ended up without the minister due to scheduling conflicts, with Apple executives instead forced to negotiate with the ministry’s director-general.
The development comes as Apple’s subsidiary in Indonesia hasn’t fulfilled the country’s 40% local components production quota for smartphones and tablets. Indonesia’s Ministry of Industry confirmed the iPhone 16 sales ban in a statement. However, older Apple products can still be sold and marketed in the country.
