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Apple Offers $1 Billion Investment - Is It Enough to End iPhone 16 Ban in Indonesia?

Apple Offers $1 Billion Investment - Is It Enough to End iPhone 16 Ban in Indonesia?
Credit: Apple

The ban on the sale of the iPhone 16 in Indonesia is expected to end soon, according to a Bloomberg report.

The ban was initially imposed following the launch of the iPhone 16 in October 2024 due to regulations on local component requirements (LCRs) and Apple’s unfulfilled investment commitments. Originally, Apple had only invested $95 million out of its pledged $110 million.

After lengthy negotiations, an agreement was finally reached. Apple proposed a $1 billion investment for an AirTag production facility, which was well-received by Indonesia.

Investment Minister Rosan Roeslani stated that the issue regarding the iPhone 16 sales ban is likely to be resolved within one to two weeks.

Is It Enough to Lift the Ban?

Unfortunately, Apple’s proposal to invest $1 billion in an AirTag production facility has been deemed insufficient by the Ministry of Industry, as it is not directly related to iPhone components.

Minister of Industry Agus Gumiwang Kartasasmita explained that the sanction is governed by Article 59 of Ministerial Regulation No. 29 of 2017 on Local Content Requirements (LCRs). This regulation allows for the revocation of Apple’s LCRs certification, effectively banning their products from being sold in Indonesia.

Agus highlighted that from 2017 to 2023, Apple renewed its LCRs certification under an innovation scheme, which was limited to education and training programs through the Apple Developer Academy. He noted that these efforts have not yet included research and development in information technology, as required by the regulation.

Therefore, during the latest negotiations on January 7, the Ministry of Industry submitted a counterproposal requiring Apple to establish an R&D facility in Indonesia as a condition for lifting the ban.

It was also mentioned during the negotiations that Apple has committed to settling outstanding obligations that are part of the requirements. A third party will be appointed by the Ministry to evaluate the relevant documents related to this settlement.

However, Minister Agus Gumiwang did not set a deadline for discussions on the renewal of Apple’s LCRs certification, emphasizing that the main priority is ensuring the substance of the agreement is fulfilled.

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