We previously reported that Apple wanted to invest $100 million in Indonesia to enable the iPhone 16 series to be sold in the country. Sales were blocked after Apple failed to fulfill its promise to invest 1.71 trillion Rupiah (~RM 473 million) that was previously promised. This morning, according to a Reuters report, the Indonesian Ministry of Industry said that Apple's $100 million investment proposal was insufficient.
Industry Minister Agus Gumiwang Kartasasmita said in a press conference that after an assessment, Apple's proposal was found to not meet the principle of fairness. The proposal to invest in an accessory factory was insufficient when compared to Apple's investments in Thailand and Vietnam.
Indonesia requires devices entering the local market to have at least 40% components or involvement with local companies. Previously, to sell iPhones, Apple opened an application development academy and invested in Indonesian accessory manufacturers.
As the country with the largest population in Southeast Asia, the ban on iPhones in Indonesia will have an impact on Apple's sales. In addition to the iPhone 16, Indonesia also banned the sale of the Google Pixel 9 for the same reason.