**Indonesia Presses Apple for Greater Investment Before Lifting iPhone 16 Ban**

The Indonesian government has scrutinized Apple's proposal of $100 million in investment, pushing for a larger commitment before considering lifting its ban on the iPhone 16 series. This decision comes after Apple's initial investment fell short of the $109.6 million it had pledged.

Government spokesperson Febri Hendri Antoni Arif highlighted that Industry Minister Agus Gumiwang Kartasasmita led an internal meeting to review Apple's new offer. "From the government's perspective, of course, we want this investment to be larger," Arif told local agency Antara News.

The primary issue at hand revolves around Indonesia's Domestic Content Level law, which mandates that 40% of components in smartphones be locally manufactured. While Apple has previously leaned towards innovation development schemes to meet these requirements, it hasn't fully aligned with the expectations set by Indonesian regulators.

Initially, Indonesia warned Apple on October 11, 2024, about a potential ban, which was enacted on October 28, halting all iPhone 16 sales. After the ban, Apple extended an additional $10 million investment offer on November 5, deemed insufficient by the government. Later, on November 19, the company significantly increased its offer to $100 million.

Apple's revised investment plan, intended to roll out over two years, includes the establishment of a research and development center and developer academies in Bali and Jakarta. These ventures promise to advance local innovation. Nonetheless, the presence of tangible manufacturing commitments in this proposal is limited. Notably, Apple has indicated plans to produce AirPods Max mesh components in Bandung starting July 2025.

The Indonesian government, however, remains focused on securing a more substantial manufacturing contribution from Apple. "While we are not yet able to produce semiconductors, if Apple requires them, they could source components from domestic suppliers," said Arif. "We would be eager to support this."

Such a move, Arif suggested, would generate a significant "multiplier effect," particularly enhancing labor absorption in the region. The negotiations between Apple and Indonesia follow a visit by Apple CEO Tim Cook in April 2024, during which he engaged with then-President Joko Widodo and discussed potential collaboration on manufacturing ventures.

"We talked about the president's desire to see manufacturing in the country, and it's something that we will look at," Cook stated. "The investment ability in Indonesia is endless."

As discussions continue, the Indonesian government remains intent on securing a more substantial and impactful investment deal from Apple to promote local manufacturing and employment.