Recently, regarding the ban on the sale of iPhone 16 series products, Apple andIndonesiaThe government has launched a new round of intense negotiations. Although Apple has raised its investment proposal in Indonesia to $100 million, the Indonesian government has stated that it has not met expectations and insists on Apple making a larger commitment.

This dispute originated from Indonesia's Domestic Content Proportion Law, which clearly stipulates that at least 40% of the components in smartphones must be locally manufactured or meet other corresponding conditions. As an internationally renowned technology company, Apple has previously made efforts to meet the legal requirements of the Indonesian government by implementing innovative development plans. However, due to failing to fully fulfill its promise of $109.6 million, Apple was severely punished by the Indonesian government on October 28, 2024- a complete ban on the sale of iPhone 16 in the Indonesian market.

Faced with this ban, Apple quickly took measures to respond. Initially, Apple proposed an additional investment of $10 million to ease relations with the Indonesian government. However, this proposal did not receive recognition from the Indonesian government and was seen as lacking sincerity. In the subsequent negotiations, Apple significantly increased the investment amount to $100 million and elaborated on its investment plan. This $100 million will mainly be used to establish research and development centers and developer colleges in Bali and Jakarta, with plans to launch in Bandung in July 2025AirPods MaxProduction of mesh components.

Although Apple's investment plan has already covered some manufacturing sectors, the Indonesian government clearly has higher expectations for Apple. Indonesian Minister of Industry Agus Gumiwan Katasamita discussed this in an internal meeting, while government spokesperson Febri Hendri Antoni Arif made it clear: "From the government's perspective, we certainly hope that this investment can be larger." He further pointed out that although Indonesia is currently unable to produce semiconductors, if Apple has demand, it can purchase relevant components through local suppliers, and the government will fully support this.

Looking back at the cooperation process between Apple and Indonesia, both sides demonstrated a good vision for cooperation in April this year. During his visit to Indonesia, Apple CEO Tim Cook met with Indonesian President Joko Widodo to explore the possibility of manufacturing cooperation. Cook highly recognized Indonesia's investment potential at the time and expressed a positive attitude towards cooperation with Indonesia. However, with the implementation of the sales ban, the cooperative relationship between the two parties has been severely tested.

At present, negotiations between Apple and Indonesia are still ongoing. Industry insiders point out that the outcome of this negotiation not only concerns Apple's market share in Indonesia, but may also have a profound impact on the expansion of other tech giants in Southeast Asia.