The iPhone 16 may soon be available again in Indonesia. After a sales ban due to local content requirements, Apple is reportedly considering a substantial investment to re-enter the market.
According to Reuters, Indonesia's Investment Minister has indicated that Apple is expected to commit to a $1 billion investment within a week. This represents a tenfold increase from Apple's previous offer of $100 million, and a hundredfold increase from the initial $10 million offer, both of which were rejected.
Why the Ban?
The iPhone 16 was banned in Indonesia because it didn't meet the country's "Local Content Requirement" (LCR), which mandates that at least 40% of a smartphone's components be locally sourced. Apple, lacking local manufacturing in Indonesia, reportedly relies on its developer academies to fulfill the LCR, which has been deemed insufficient.
The $1 Billion Solution
The $1 billion investment is likely Apple's attempt to regain access to the Indonesian market. However, time is of the essence, as Indonesia plans to increase the LCR requirement for smartphones beyond 40% soon.
Google's Pixel 9 phones are also currently banned in Indonesia for similar reasons, though it's unclear whether Google is negotiating a similar deal.
