Apple offers Indonesia US$10 million sweetener to reverse its iPhone ban

Indonesia’s iPhone ban is an example of the pressure Prabowo Subianto’s government is putting on multinationals to boost local manufacturing

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Indonesia banned the sale of Apple’s iPhone 16 citing a lack of local investment. Photo: Apple/TNS

Published: 10:38am, 5 Nov 2024

Apple Inc. has proposed investing almost US$10 million to make additional goods in Indonesia, according to people familiar with the matter, as it seeks to have the country’s ban on sales of its latest iPhone removed.

The plan would involve Apple investing in a factory in Bandung, southeast of Jakarta, in partnership with its list of suppliers, the people said, asking not to be identified because they’re not authorised to speak publicly. The facility would make products such as accessories and components for Apple gadgets, the people said.

Apple has submitted its proposal to the nation’s Ministry of Industry, which last month blocked a permit allowing the sale of the iPhone 16 on the grounds that the US tech giant’s local unit has not met a 40 per cent domestic content requirement for smartphones and tablets.

The ministry is deliberating on the proposal, which isn’t final and may be subject to change, and is expected to reach a decision shortly, the people said.

Indonesians in Jakarta use their mobile phones to take selfies as President Prabowo Subianto (centre) rides past last month. Photo: AFP

Apple didn’t respond to a request for comment. The Ministry of Industry also didn’t respond to a request for comment.

Indonesia’s iPhone 16 ban is the latest example of the pressure new President Prabowo Subianto’s government is putting on international companies to boost local manufacturing as it seeks to protect domestic industries. The Southeast Asian nation has also banned the sale of Alphabet Inc.’s Google Pixel phones because of a similar lack of investment.