Apple's Potential $1 Billion Investment in Indonesia to Resume iPhone 16 Sales

Prospective Manufacturing Ventures in Indonesia

The Indonesian government, through its investment minister, Rosan Roeslani, is setting the stage for Apple to channel an investment of $1 billion into the country. This move stems from a local regulation requiring that smartphones sold in Indonesia must incorporate 40% of components made locally. At present, Apple does not have the facilities in Indonesia to fulfill this requirement, resulting in a halt to the sale of the iPhone 16.

Roeslani has emphasized the necessity for Apple to scale up its investments if it plans to integrate Indonesia into its production network. The establishment of manufacturing operations would not only meet local content stipulations but would also generate employment opportunities for Indonesians.

A Previously Declined Proposal

In the past, Apple had proposed a $100 million investment to construct a facility for accessory and component manufacturing. However, this proposal was turned down by Indonesian authorities as it failed to align with established “principles of fairness.”

Although the tech giant has yet to develop infrastructure to meet the 40% local production criterion, it operates several application developer academies in Indonesia. These academies facilitated the continued sale of older iPhone models in the region, and there are currently no indications of any impending bans on these devices.

Efforts to obtain a statement from Apple regarding this matter have been unproductive as the company has not provided any response at this time.