Indonesia iPhone Ban: Apple Proposes $10M Manufacturing Investment

Apple has proposed investing nearly $10 million in Indonesian manufacturing operations in an effort to lift the country's recent ban on iPhone 16 sales, according to sources familiar with the matter (via South China Morning Post).

iPhone 16
The investment would establish a factory in Bandung, near Jakarta, where Apple would partner with its suppliers to produce accessories and components for Apple devices. The proposal has been submitted to Indonesia's Ministry of Industry for review.

The manufacturing investment comes in response to Indonesia blocking iPhone 16 sales last month, after it was determined that Apple's local unit failed to meet the country's requirement for 40% domestic content in smartphones. The ban is part of broader protectionist policies implemented under new President Prabowo Subianto's administration, which has also restricted sales of Google's Pixel phones for similar reasons.

Indonesia represents a significant market for Apple, with the country's population of 280 million operating some 354 million active mobile phones. Apple has established four developer academies in Indonesia to train students and engineers, but the country's officials have pressed for more substantial manufacturing investments.

The proposed $10 million facility would mark Apple's first manufacturing presence in Indonesia, potentially helping the company comply with local content requirements. The Ministry of Industry is currently reviewing the proposal and is expected to make a decision soon.

About 9,000 iPhone 16 units have entered Indonesia through personal imports, but these devices are restricted to personal use and cannot be sold commercially under the current ban.

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Top Rated Comments

karnac Avatar
9 months ago
How absurd the world stage is becoming, with the EU constantly henpecking Apple over their own software & hardware integration, and now INDONESIA basically saying no one can sell phones to their citizens if they aren't 40% "domestic content", whatever that means. This blatant extortion serves only to prop up the governments of these areas and actually creates worse conditions for their citizens. It's time the NWO model is put in check, the state's function is to build infrastructure and enforce local criminal law, not extort foreign businesses. I'm not sorry that there are now technology corporations with more power than the governments of the world, but as long as those companies empower the people that is how it should be.
Score: 20 Votes (Like | Disagree)
wdfly Avatar
9 months ago

How absurd the world stage is becoming, with the EU constantly henpecking Apple over their own software & hardware integration, and now INDONESIA basically saying no one can sell phones to their citizens if they aren't 40% "domestic content", whatever that means. This blatant extortion serves only to prop up the governments of these areas and actually creates worse conditions for their citizens. It's time the NWO model is put in check, the state's function is to build infrastructure and enforce local criminal law, not extort foreign businesses. I'm not sorry that there are now technology corporations with more power than the governments of the world, but as long as those companies empower the people that is how it should be.
I would advise caution in this line of thinking, I think any one group or company having too much power always results in a bad situation eventually.
Score: 15 Votes (Like | Disagree)
Total Respray Avatar
9 months ago

How absurd the world stage is becoming, with the EU constantly henpecking Apple over their own software & hardware integration, and now INDONESIA basically saying no one can sell phones to their citizens if they aren't 40% "domestic content", whatever that means. This blatant extortion serves only to prop up the governments of these areas and actually creates worse conditions for their citizens. It's time the NWO model is put in check, the state's function is to build infrastructure and enforce local criminal law, not extort foreign businesses. I'm not sorry that there are now technology corporations with more power than the governments of the world, but as long as those companies empower the people that is how it should be.
The state’s primary function is the security and protection of its citizens.
Score: 10 Votes (Like | Disagree)
cicalinarrot Avatar
9 months ago

How absurd the world stage is becoming, with the EU constantly henpecking Apple over their own software & hardware integration, and now INDONESIA basically saying no one can sell phones to their citizens if they aren't 40% "domestic content", whatever that means. This blatant extortion serves only to prop up the governments of these areas and actually creates worse conditions for their citizens. It's time the NWO model is put in check, the state's function is to build infrastructure and enforce local criminal law, not extort foreign businesses. I'm not sorry that there are now technology corporations with more power than the governments of the world, but as long as those companies empower the people that is how it should be.
"Unregulated global capitalism is best for all"
Yeah, I'm gonna need a source for that.
Score: 9 Votes (Like | Disagree)
melliflu Avatar
9 months ago
And if this is not enough, Apple will add a $35,000 official repair shop to the proposal.
Score: 9 Votes (Like | Disagree)
cfountain72 Avatar
9 months ago

While I understand that many MacRumors users are Apple investors, I find it hard to understand how people can be against a government trying to bring investment and jobs to their country.
I'm an Apple customer (not a direct investor). I see where you are coming from; as an American, I am proud to buy Made in USA products where possible. But imagine for a minute if every country had similar domestic content laws in place. Apple would need to have manufacturing facilities in every country they sell phones in...? That would be completely unfeasible, and consumers in most countries would simply have to resort to black markets to buy iPhones...? Is that what we want?
Score: 8 Votes (Like | Disagree)