Apple to Invest $1 Billion in Indonesia to Lift iPhone Sales Ban

Apple is prepared to invest $1 billion in Indonesia’s economy to lift the ban on iPhone 16 sales, according to a Bloomberg report citing the Indonesian government.

While a formal agreement is pending, verbal commitments have already been made. Indonesia’s Minister of Investment, Bahlil Lahadalia, described this as the "first stage" of Apple’s investment in the country. He emphasized that Apple benefits significantly from its presence in the Indonesian market and must contribute to the local economy by creating jobs. It remains unclear whether the investment requirements for Apple will increase in the future. The company has declined to comment.

Indonesia imposed a sales ban on the iPhone 16 in October 2024 after Apple failed to meet its investment obligations. Instead of the required 1.7 trillion Indonesian rupiahs (approximately $108 million), the company invested only 1.5 trillion rupiahs (around $95 million). Furthermore, the government mandates 40% localization of smartphone production, posing additional challenges for Apple.

Initially, Apple proposed a $10 million investment in local manufacturing, later raising the offer to $100 million, but this still fell short of the government's requirements.