In response to a sales ban on the iPhone 16, Apple has proposed to significantly increase its manufacturing investment in Indonesia from $10 million to $100 million.

This proposal follows a previous plan to establish a factory in Bandung for manufacturing accessories and components, which was blocked by the government due to non-compliance with local content requirements.

Apple's efforts demonstrate its commitment to resolving issues and expanding its footprint in one of the fastest-growing markets globally.

Indonesia has recently surpassed Thailand to become the largest iPhone market in Southeast Asia, indicating significant growth in iPhone shipments.

Apple's history in Indonesia dates back to 2017, when it made commitments to secure local manufacturing rights to sell iPhones in the country.

Apple's executives attempted to meet with Indonesia's industry minister, Agus Gumiwang Kartasasmita, to discuss the proposal, but were unable to do so and instead met with a lower-ranking official.

However, Indonesia's stringent local investment policies may deter other multinational companies from expanding in the region, potentially undermining the government's goals.

A meeting is scheduled for November 21, 2024, where Minister Kartasasmita will discuss Apple's enhanced investment proposal.

With a population of 278 million, Indonesia represents a crucial market for Apple, particularly as rising incomes and a tech-savvy demographic drive demand for its products.

The Indonesian government's strategy under President Prabowo Subianto aims to pressure international firms like Apple to increase local manufacturing, which could bolster domestic industries.

Additionally, Apple has initiated the launch of Apple Academies in Indonesia to foster long-term development in the region.

If approved, Apple's increased investment could strengthen relationships with key suppliers like Foxconn and enhance Indonesia's attractiveness for further foreign investment.