iPhone 16 ban in Indonesia: Apple expected to pay 10x more than previous offer to lift sales embargo

Indonesians may soon be able to officially buy the iPhone 16 models again as the country’s Investment Minister has hinted that Apple is willing to invest a substantial sum in the country. The development is a significant one as the Indonesian government has been at odds regarding Cupertino’s investment offers.

Apple initially offered to invest $10 million in Indonesia to clear the ban but the offer was rejected. The company later increased the investment offer to $100 million but to no avail. Reuters reports that the Indonesian Investment Minister has claimed that Apple is expected to commit to a whopping $1 billion investment in a week's time. If true, this would be a 10x increase over the company’s previous $100 million offer.

The Indonesian authorities banned the sales of the iPhone 16 for a simple reason: Apple didn’t invest the required capital as stipulated by the country’s “Local Content Requirement” or LCR. As a result, sales of the iPhone 16 models were banned.

Indonesia’s Local Content Requirements stipulate that for a foreign smartphone maker like Apple, devices like the iPhone 16 must comprise at least 40% locally produced components. Since Apple has no local manufacturing in Indonesia and reportedly relies on its developer academies to meet the LCR quota, the iPhone 16 doesn’t meet the 40% requirement.

The expected $1 billion investment is a way for Apple to get back into the Indonesian market. But the company has to make a deal quickly since, per Reuters, the country plans to increase the LCR requirement for smartphones to above 40%.

Finally, like the iPhone 16, Google’s latest Pixel 9 phones are also banned in Indonesia. However, there is no indication whether Google is negotiating any deals with the country.

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