Apple's attempts to resume sales of the iPhone 16 in Indonesia have failed, despite the company's offer to invest one billion dollars in local production, gazeta.ru reports with reference to Reuters.
Indonesia's Ministry of Industry has rejected Apple's proposal to build a plant on the island of Batam to produce AirTag trackers. According to the authorities, the production of accessories does not solve the problem of localizing the production of smartphones themselves, which is a key requirement of local legislation.
The conflict began in the fall of 2024, when Apple failed to meet its investment commitments, investing only 1,5 trillion Indonesian rupiah (about 95 million USD) instead of the required 1,7 trillion. In addition, the company did not achieve the required 40% localization level of production. Apple's successive compensation offers of 10 million USD, 100 million USD, and even 1 billion USD were rejected by the authorities.
It is worth noting that similar restrictions also affected Google Pixel smartphones, which were also banned in Indonesia in the fall of 2024 due to non-compliance with localization requirements. According to the requirements, devices sold in the country must be made from 40% local components.
