In late October 2024, Indonesia officially banned the iPhone 16 due to Apple’s shortfall in local investments. The ban reflects Indonesia’s push to increase manufacturing investments, with Apple reportedly falling behind on its commitment.
According to Bloomberg, Apple has since proposed a $10 million investment in local suppliers and a factory near Jakarta that produces accessories and components for Apple devices. This proposal has been submitted to Indonesia’s Ministry of Industry, which is currently reviewing it. While neither Apple nor the Ministry has publicly commented, a decision is expected soon.
The proposed $10 million, however, falls short of Apple’s prior pledge of $109.6 million. So far, Apple has invested $94.53 million, requiring an additional $15 million to meet its commitment.
To operate in Indonesia, Apple and other foreign companies need a Domestic Content Level certificate, requiring 40% of components or services to be local. Apple previously held this certificate but allowed it to expire.
In the past, Apple’s Indonesian investments focused on “innovation development” with the launch of Apple Developer Academies, which still counted toward the Domestic Content Level. The fourth academy opened in April 2024, with Tim Cook praising Indonesia’s growing developer community.
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