Apple invests heavily in Indonesia and circumvents sales ban for iPhone 16

The technology giant Apple has responded to the looming sales ban of its upcoming iPhone 16 in Indonesia by unveiling a revised investment plan. The ban by the Indonesian government was due to Apple's failure to comply with a regulation requiring that 40 percent of the components used in smartphones and tablets be sourced locally. Apple had initially proposed a $100 million investment to establish an accessory and component facility in Bandung, West Java. However, Indonesian authorities deemed this offer insufficient, citing Apple's more significant investments in other countries such as Vietnam. In a savvy move, Apple has now increased its offer to $1 billion. This substantial capital injection is intended for a new production facility in Indonesia that will manufacture components for mobile phones and other devices. This would enable Apple to meet local content regulations and circumvent the threatened ban on the iPhone 16. Indonesian Investment Minister Rosan Roeslani stated that the revised plan is under review, and they expect a formal commitment from Apple in the near future. The details are yet to be finalized, but Roeslani emphasized that Apple's new offer is now more in line with Indonesia's goals to promote local production and create jobs. Indonesia's local content regulations are part of a strategy to boost the manufacturing sector and attract foreign investments. Government officials argue that companies benefiting from the local market should also contribute to its economic growth.