Apple Boosts Indonesian Investment Proposal to $1 Billion Amid iPhone 16 Ban

Citing Apple’s (AAPL, Financials) inability to fulfill a regulation calling for 40% locally sourced components in smartphones and tablets, the Indonesian government banned the sale of Apple’s iPhone 16 in October 2024. Apple first suggested a $100 million investment to establish a Bandung, West Java accessories and component facility. But Indonesian authorities said the offer was insufficient, citing Apple’s more significant foreign investment in nations such Vietnam.

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Apple has changed its offer to a $1 billion investment meant to build a manufacturing facility in Indonesia in an attempt to break through the deadlock. The factory would create parts for cellphones and other gadgets, allowing the business to follow local content rules for Indonesia.

Rosan Roeslani, the minister of investments, said that the government is going over the updated plan and anticipates Apple making a formal commitment not too far off. The details are being finalized, according to Roeslani, pointing out that the revised offer more closely reflects Indonesia’s goals of encouraging local manufacture and employment development.

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To boost its manufacturing sector and attract large foreign investment, the Indonesian government has underlined the need of implementing local content rules. Officials contend that businesses profiting from the local market have to help the nation grow economically.

This article first appeared on GuruFocus.