Apple is facing a “battle” in Indonesia as the iPhone 16 is banned from being sold due to not meeting the required local component ratio. To “save” its flagship product, the tech giant has rolled out a strategy by investing 10 million USD to expand production in Indonesia.

The 10 million USD investment in this factory is a strategic move by Apple to strengthen its presence in Indonesia—a potential market with a population of 280 million and nearly 354 million active mobile phones.
Apple plans to invest in a component manufacturing plant in Bandung to meet Indonesia’s government requirements for local content ratio. However, this investment may be just a “drop in the ocean” compared to the vast potential market in Indonesia.
Additionally, Indonesia’s “protectionist” policies have sparked controversy. Some experts are concerned that these policies may diminish Indonesia’s attractiveness to foreign investors, negatively impacting the economy.
Earlier this year, the Indonesian government imposed restrictions on the import of thousands of products, from MacBooks and tires to chemicals, in an effort to force foreign companies to expand local production.
Google Pixel was also banned here for not meeting local content standards, showing the government’s coordinated policy to protect the local industry and domestic businesses.