Jakarta. Apple has committed to investing $100 million (approximately Rp 1.57 trillion) in Indonesia to address the government’s ban on the iPhone 16, according to reports by Bloomberg and GSM Arena. This investment is a significant increase from the company’s previous pledge of $10 million (Rp 156.8 billion).

The initial $10 million investment is earmarked for building an accessory manufacturing facility in Bandung, West Java. The new $100 million commitment will be rolled out over two years, with the first phase dedicated to the Bandung facility. Details on the allocation of the remaining $90 million are still unclear. GSM Arena speculates it may involve Apple’s manufacturing partner, Foxconn, potentially setting up an assembly line in Indonesia.

Apple’s proposed investment still falls short of the Rp 1.7 trillion target set by Industry Minister Agus Gumiwang Kartasasmita. The minister has pushed Apple to meet Indonesia’s domestic component level (TKDN) threshold of 35 percent, a requirement for selling the iPhone 16 in the country.

To fulfill the TKDN criteria, Apple has opted for the innovation and development route by expanding its Apple Developer Academy program. The academy currently operates in three locations: BSD in Banten, Sidoarjo in East Java, and Nongsa in Batam. During a recent visit to Indonesia, Apple CEO Tim Cook pledged to open an additional academy in Bali, though the plan has yet to materialize.

The iPhone 16, launched globally in September, is not available for sale in Indonesia due to its failure to meet TKDN requirements. As a result, the Trade Ministry has banned online platforms from listing the device, while the Industry Ministry plans to block the International Mobile Equipment Identity (IMEI) for iPhone 16 units in the country, rendering them unusable.

Despite the restrictions, an estimated 9,000 iPhone 16 units have entered Indonesia between August and October 2024 via individual travelers who paid the appropriate taxes. Similarly, 22,000 Google Pixel devices were brought into the country through personal imports or overseas shipments earlier this year. These devices, however, are only permitted for personal use and are prohibited from being resold.

Neither Apple nor the Ministry of Industry has issued an official response to the ongoing negotiations or the status of the investment.

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