Indonesia has turned down Apple's (AAPL, Financial) $100 million investment plan to lift the ban on the iPhone 16. The Ministry of Industry revealed that Apple's offer fails to meet local content policy, especially the rule requiring 40 percent of the phone's parts to come from Indonesia. Apple initially expected foreign investment to enable it to sell the iPhone 16 domestically. Still, Indonesia's government has stressed that technology companies must make more production investments, such as establishing production centers or factories.
Speaking of the iPhone 16, which was banned in Indonesia last month, it also aims to boost domestic manufacturing in the technology sector. Apple's $100 million proposal that has been presented in order to meet the local content requirement is still far from the $109.6 million that the government has set. You can also see that Apple's previous attempts to meet the local content requirement with the help of developer academies need to be more powerful. Specifically, Apple still needs to construct production factories within the country, which is still a big issue for the Ministry of Industry.
With these regulations, Apple may lose business in the Southeast Asian giant, Indonesia, which has a population of nearly 280 million. The same factors have made Indonesia ban other technology products like Google Pixel phones, noting the country's efforts to encourage international businesses to set up manufacturing facilities in the country.
