As a part of its efforts to get the Indonesian government to lift an iPhone 16 sales ban, Apple recently announced plans to boost its proposed investment in the country from $10 million to $100 million. However, Indonesian officials are telling Apple that it will need to dig a bit deeper into its corporate pocketbook if it wants to see the ban lifted.
Indonesian officials announced a ban on iPhone 16 sales in the country after the government determined that Apple had not met the country's 40% domestic content requirement for smartphones. Officials also say Apple fell short of its promised investment of 1.7 trillion rupiah ($109.6 million US) through developer academies, investing only 1.5 trillion rupiah ($95 million US) instead.
Indonesia, with a population of 280 million, represents a significant piece of Apple's smartphone market, accounting for around 354 million active mobile phones.
The iPhone maker wants the ban removed in order to lay the groundwork for further growth in an expanding device market.
If the upgraded version of the proposal is approved, it could enhance Apple's position in the country's economy while also boosting Indonesia's smartphone research and development capabilities.
The negotiations between Apple and the Indonesian government emphasize the difficulties global corporations face as they attempt to comply with local regulatory rules and gain a foothold in a country's marketplace.
While industry minister Agus Gumiwang Kartasasmita has met with other government members to discuss the Apple proposal, a ministry spokesperson now says that Apple needs to make a larger financial commitment to the country.
"From the government's perspective, of course, we want this investment to be larger," Febri Hendri Antoni Arif told Antara News. The government is said to be concentrating on having Apple source components from Indonesian suppliers, indicating this would create a "multiplier effect" for local employment.
Apple had made an initial $10 million proposal, although it raised the proposal to $100 million earlier this month. The offer includes plans for opening research and development facilities and developer academies in Bali and Jakarta over the next two years. Apple also says it plans to manufacture AirPods Max ear cup mesh components in Bandung, with a scheduled July 2025 production start date.
Indonesia's Ministry of Industry is now pushing Apple to direct more of its investment toward smartphone research and development within the country.
In April, Apple announced plans to open Indonesia's fourth Apple Developer Academy in Bali. The academy will serve developers, students, and entrepreneurs looking to start careers in the region's growing iOS app economy.
Apple launched its first Indonesian Apple Developer Academy in Jakarta in 2018. Since then, Apple has opened additional developer academies in Surabaya and Batam. Over 2,000 aspiring developers have completed the Apple Developer Academy program.
The academy's nine-month program covers coding basics, design, marketing, and project management. In addition to Indonesia, the Bali Apple Developer Academy will accept students from around the globe, regardless of education level or coding experience.
Hundreds of thousands of Southeast Asian developers are behind more than 90,000 apps on the App Store.