Apple Offers $100 Million to Lift iPhone 16 Ban in Indonesia: Report

According to a report by Bloomberg, the tech giant has offered to invest almost $100 million in Indonesia over two years. Earlier, Bloomberg reported of Apple planning to invest $10 million in the country which involves a factory in Bandung, southeast of Jakarta in partnership with a list of its suppliers. The factory would make accessories and components for Apple gadgets.Apple has submitted its increased offer but Indonesia’s Ministry of Industry, which banned the sale and usage of the latest iPhone 16 series lineup, has demanded Apple “to alter investment plans to focus more on research and development” for its smartphones in the country, the report said.However, the ministry did not make any final decision on Apple’s latest proposal.Earlier, Indonesia used the same tactics against TikTok’s parent ByteDance, forcing them to invest $1.5 billion in a joint venture with Tokopedia. Along with iPhone 16, the country has also blocked the sale of Google Pixel phones.WIth the investment, Apple is looking to tap the country’s 278 million consumers.This investment proposal comes after iPhone 16 was banned citing unfulfilled investment promises by Apple. The tech giant committed to invest IDR 1.71 trillion in the country but they invested only IDR 1.48 trillion. Due to this, the International Mobile Equipment Identity (IMEI) certification, which is necessary for sale of devices in the country, was withheld by the Indonesian Ministry of Industry.The Domestic Component Level certification is necessary for foreign companies to do sales in Indonesia and this is achieved through local manufacturing or establishing Research & Development facilities. To receive the certification, foreign companies should meet the requirement of at least 40 per cent of local parts. As Apple did not meet the requirements, its certification process was hindered.