Apple Inc. (AAPL.US) reportedly offered a staggering $100 million in an effort to lift the ban on iPhone 16 in Indonesia.

To lift the sales ban of iPhone 16 in Indonesia, Apple Inc. (AAPL.US) has increased the amount of its investment proposal by nearly tenfold, but the Indonesian government has requested Apple Inc. to change its investment plan and put more focus on the research and development of smartphones in the country. This strategy is one of Indonesia's new government's efforts to pressure international companies to increase local manufacturing. According to sources, Apple Inc. plans to invest nearly $100 million in Indonesia over the course of two years in its latest proposal, a significant increase from the previous plan of $10 million. This change came after the Indonesian Ministry of Industry blocked the sales permit of iPhone 16 and requested Apple Inc. to adjust its investment focus to prioritize the research and development of Indonesian smartphones. The Ministry has not made a final decision on Apple Inc.'s latest proposal yet. Previously, Apple Inc. executives flew to Jakarta hoping to meet with the Minister of Industry, but were informed that the Minister was unavailable, leading them to meet with the Director-General of the Ministry instead. Meanwhile, the Ministry of Industry and Information Technology in Indonesia banned the sale of iPhone 16 due to Apple Inc.'s local subsidiary not meeting the requirement of a 40% local production rate for smartphones and tablets. In response, Apple Inc. proposed a new investment plan to address the issue. The Indonesian government's investment requirements for Apple Inc. are strict, as they previously banned the sale of some of Apple Inc.'s products due to the company failing to meet promised investment amounts. This tough stance has continued under the new President of Indonesia, Prabowo Subianto, aiming to pressure international companies to increase local manufacturing and promote domestic industry development. Former Indonesian President Joko Widodo also implemented similar strategies, successfully encouraging TikTok under ByteDance to establish a joint venture with Indonesia's e-commerce entity Tokopedia under the GoTo Group. Apple Inc.'s investment in Indonesia aims to reach the country's 278 million consumers, where more than half are young and tech-savvy. However, Indonesia's tough approach may deter other companies and impact their business expansion and investment willingness in the country. This could pose potential risks for the Prabowo government's goal of attracting foreign investment to boost economic development and fund policy expenditures. Currently, the specific details of Apple Inc.'s investment plan and targets are not clear, but typically Apple Inc. partners with companies like Foxconn in various countries for assembly or supply of important components for iPhone and iPad production. Apple Inc. and the Indonesian Ministry of Industry have not commented on the progress of the latest proposal.