Devices & Platforms

Apple offers Indonesia extra US$100m investment to lift iPhone 16 ban

Apple offers Indonesia extra US$100m investment to lift iPhone 16 ban

Apple has reportedly offered to invest an additional US$100 million in Indonesia to convince the government to approve its new iPhone 16 to be sold in the country.

The iPhone 16 – which launched in September – is currently banned from sale in Indonesia because it hasn’t yet received certification under the government’s Tingkat Komponen Dalam Negeri (TKDN) regulations, which require 35% of components in telecoms products to have originated or be produced in Indonesia.

Indonesia’s Ministry of Industry said last month that TKDN certification of the iPhone 16 is contingent on Apple fulfilling its earlier pledge to invest IDR1.71 trillion (US$109 million) in Indonesia, to include establishing a new Apple Academy for app developers in Bali.

Earlier this month, Bloomberg reported that Apple offered to invest almost US$10 million in a factory in Bandung to make Apple accessories and components in exchange for approving TKDN certification of the iPhone 16.

According to a new Bloomberg report, citing anonymous sources, Apple has increased the investment amount to close to US$100 million over the next two years. It’s unknown where the additional investment funds would be spent, although Bloomberg says the Ministry of Industry is pressing the tech giant to direct its investment focus more on smartphone R&D.

The report said the ministry hasn’t made a decision on the latest proposal. Neither Apple nor the ministry have confirmed the report.

While it remains illegal to sell iPhone 16s in Indonesia, travellers can still bring them into the country for personal use. The ministry said around 9,000 iPhone 16s have been imported into the country as of October.



More Articles you may be Interested in...