Indonesia is pressuring Apple to significantly increase its proposed $100 million investment to gain approval for selling the iPhone 16 in the country. The smartphone model currently fails to meet Indonesia’s strict regulation requiring 40% domestic content in smartphones and tablets, which aims to protect local industries and create jobs.

Apple’s current offer includes funding for a research and development center, professional training programs, and accessory production starting in 2025. However, Indonesian officials argue that the proposed investment is insufficient to meet the country’s goals for bolstering its manufacturing sector and supporting local suppliers.

The Ministry of Industry emphasized that Indonesia’s domestic industry already has the capability to contribute to Apple’s production, such as manufacturing chargers and accessories. A larger investment from Apple could further strengthen the nation’s industrial base and ensure long-term economic benefits.

While Indonesia represents a relatively small market for Apple today, analysts highlight its strategic importance due to its tech-savvy, youthful population and its potential as a regional manufacturing hub. By complying with local regulations and increasing its financial commitment, Apple could unlock growth opportunities in the world’s fourth most populous country and strengthen its global supply chain diversification.