Apple is taking a big step to bring its iPhone 16 back to Indonesia. The tech giant has offered the country an investment of $100 million to end the ban on its latest products, including the Apple Watch Series 10. The ban was imposed because Apple did not meet the government rule that requires at least 40%. Components or manufacturing for certain products originating from within Indonesia.

Why was the ban imposed?

Indonesia has a law aimed at boosting its economy and creating local jobs. It requires companies selling certain electronic products to meet a 40% “domestic content” requirement. This can be done by using locally sourced materials, employing Indonesian workers, or setting up manufacturing facilities in the country.

Apple had already invested $94 million in Indonesia through various initiatives, including opening developer academies to train local tech talent. However, this was not enough to meet the threshold, as the company was reportedly $15 million short. As a result, Indonesia banned the sale of the iPhone 16 and other new Apple devices. Older models like the iPhone 14 are still available in stores.

Apple’s $100 million plan

Initially, Apple offered $10 million to solve the problem, but the government rejected the offer. Now, the company is back with a much bigger offer – $100 million – to set up a manufacturing plant in Indonesia. This factory will allow Apple to meet the 40% domestic content requirement and comply with local regulations.

The Indonesian Industry Ministry will review Apple’s latest proposal this week. If approved, the manufacturing plant could bring significant benefits to the country, including new jobs and economic growth.

Why is Indonesia important for Apple?

Indonesia is a key market for Apple, with a population of 280 million people and growing demand for smartphones. However, the ban benefits competitors like Samsung and Xiaomi, which already have factories in the country and can sell their latest devices without any restrictions.

By committing to building a local manufacturing plant, Apple is not only working to get the ban lifted, but also signaling its long-term interest in Indonesia. If the deal is successful, it could be a win-win: Apple gets access to a larger market, while Indonesia gets an economic boost.

The situation highlights the challenges global companies face in meeting local regulations while remaining competitive in fast-growing markets like Indonesia.