Jakarta, Indonesia - In a bold move that has sent ripples through the tech industry, Indonesia's Ministry of Trade has declined Apple's $100 million proposal to overturn the recently imposed ban on latest iPhone model sales in the country.
The ban, which went into effect last month, prevents Apple from selling its latest flagship smartphone in Southeast Asia's largest economy. Indonesian officials cited concerns over the device's compliance with local content requirements and data protection regulations.
According to ministry spokesperson Dewi Sutrisno, "The offered compensation package does not address our fundamental regulatory requirements. We remain firm in our position that all smartphone manufacturers must follow Indonesian law."
The proposed $100 million package included investments in local manufacturing facilities and tech education programs. However, Indonesian authorities maintained that monetary incentives cannot override national security and data sovereignty concerns.
Apple's Regional Director for Southeast Asia, James Chen, expressed disappointment with the decision. "We remain committed to serving our Indonesian customers and will continue discussions with regulatory authorities to find a resolution," Chen stated in a press release.
Industry analysts suggest this rejection could impact Apple's expansion plans in emerging markets, where governments are increasingly assertive about digital sovereignty and local content requirements.
The ban affects only the iPhone 16 model, while previous iPhone versions remain available for sale in Indonesia. Local retailers report increased demand for older iPhone models since the announcement of the ban.
Indonesian authorities have indicated they would reconsider the ban if Apple meets specific requirements, including establishing local data centers and increasing cooperation with domestic technology firms.
This development marks the latest challenge for Apple in Southeast Asian markets, where regulatory scrutiny of international tech companies continues to intensify.