Indonesia holds the iPhone 16 hostage: $100 million not the ransom they want

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A person holding the iPhone 16 Pro.
Apple's $100 million investment offer is not enough, so Indonesia won't lift the iPhone 16 sales ban. You might have missed the previous episodes of this exotic drama, so I'll guide you through it all.

Apple has a new iPhone. It's shiny and sleek. And expensive. Apple wants to sell the iPhone 16 in Indonesia. Indonesia is a home to many, many people. In fact, it's the fourth most populous country in the world. That's a lot of potential iPhone sales. That's a beautiful revenue for Apple. Naturally, the want it.

The only problem is that Indonesia banned the iPhone 16 sales. It did so with the Pixel 9 line as well.

Why?

Well, because the iPhone 16 doesn't pack enough local-made parts. Indonesia will allow the iPhone 16 to be sold locally only after 40% of the parts are Indonesian-made.

Indonesia’s industry ministry spokesperson, Febri Hendri Antoni Arief, explained that the country’s regulations aim to ensure fairness for investors. He noted that banned devices have not met the necessary requirements and are therefore prohibited from being sold in Indonesia.

Then, Apple made their move and promised to invest $100 million in Indonesia if the country ends the iPhone 16 sales ban.

That's not enough, though.

Per Reuters, Indonesia has rejected Apple’s $100 million investment proposal aimed at building an accessory and component plant, saying it is insufficient for the company to be allowed to sell its latest iPhone.

The Indonesian industry ministry confirmed last week that Apple had submitted the investment proposal in hopes of lifting the sales ban. However, Industry Minister Agus Gumiwang Kartasasmita stated that after an evaluation, Apple’s proposal was deemed inadequate. He criticized the offer by comparing it to Apple's larger investments in neighboring countries like Vietnam and Thailand.

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Although Apple does not have manufacturing facilities in Indonesia, it has set up application developer academies since 2018, which Jakarta sees as a way to fulfill local content requirements for older iPhone models. To comply with local regulations, companies typically increase the use of domestic components through partnerships with local suppliers.

But can I take my iPhone 16 or Pixel 9 to Indonesia?



Yes.

For tourists, bringing the iPhone 16 into Indonesia is permitted, with visitors allowed up to two units. Indonesian citizens can also bring in iPhone 16 devices purchased abroad, provided taxes are paid and the phones are not sold locally. While the device remains banned from sale within the country, these rules allow limited access for personal use.

This clarification has reassured Apple users amid earlier fears that foreign-purchased iPhones might be confiscated at entry points.

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