Apple reportedly spends 100 million USD in an effort to lift the iPhone 16 ban in Indonesia

According to Zhitong Finance APP, to lift the sales ban on the iPhone 16 in Indonesia, Apple Inc. (AAPL.US) has increased the amount of its investment proposal by nearly ten times, but the Indonesian government has requested Apple to change its investment plan to focus more on the research and development of smartphones in the country. This strategy is one of the measures taken by Indonesia's new government to pressure international companies to increase local manufacturing. According to informed sources, Apple plans to invest nearly $100 million in Indonesia over the next two years in its latest proposal, a significant increase from the previous $10 million investment plan. This change occurred after the Indonesian Ministry of Industry blocked the sales license for the iPhone 16, requiring Apple to adjust its investment focus to emphasize the research and development of smartphones in Indonesia. Currently, the Ministry of Industry has not made a final decision on Apple's latest proposal. Previously, Apple's executives flew to Jakarta hoping to meet with the Minister of Industry, but were informed that the minister was unavailable and could only meet with the director of the ministry. Meanwhile, the Indonesian Ministry of Industry and Information Technology also banned the sale of the iPhone 16 because Apple's local subsidiary did not meet the 40% localization requirement for smartphones and tablets. In response, Apple proposed a new investment plan. The Indonesian government has strict requirements for Apple's investment, having previously banned the sale of some of its products due to Apple not meeting the promised investment amount. This tough strategy has continued under the government of Indonesia's new president, Prabowo Subianto, aiming to increase local manufacturing and promote domestic industry development by pressuring international companies. Previously, former Indonesian President Joko Widodo also adopted a similar strategy, successfully prompting ByteDance's TikTok to invest in a joint venture with Indonesia's GoTo Group's e-commerce division, Tokopedia. Apple's investment in Indonesia aims to reach the country's 278 million consumers, more than half of whom are young and tech-savvy. However, Indonesia's tough strategy may also deter other companies, affecting their business expansion and investment willingness in the country. This could pose potential risks to Prabowo's government's goal of attracting foreign investment to develop the economy and fund policy expenditures. Currently, Apple's specific investment plans and targets have not been clarified, but Apple typically supports assembly or component partners like Foxconn in various countries, which help produce or supply important components for the iPhone and iPad. Apple and the Indonesian Ministry of Industry have not commented on the progress of the latest proposal