Apple is lobbying for iPhone 16 sales in Indonesia and is willing to sweeten its $100 million proposal.

• The iPhone 16 model from Apple does not meet Indonesia's 40% domestic content requirements for smartphones and tablets, and it has not been granted permission to be sold in the country.
• The Indonesian government is seeking more than the $100 million in investments that the American tech giant has proposed.

The Indonesian government anticipates increasing its proposed $100 million investment into the country, as Apple seeks clearance from Jakarta to sell its latest phones, according to state media.

The latest smartphone model from the American tech giant does not meet Indonesia's 40% domestic content requirements and has not been approved for sale in the country.

In order to gain greater access, officials are requesting that Apple increase its investments and commitments to the local economy, which will protect local industry and jobs.

On Thursday, representatives from Apple met with the Ministry of Industry in Indonesia to discuss a $100 million investment proposal over a two-year period.

The report suggests that the funds will be allocated to a research and development center program and a professional development academy in the country.

The company intends to begin manufacturing mesh components for Apple's AirPods Max in July 2025, in addition to its plans to produce accessory product components.

Apple didn't immediately respond to a request for comment from CNBC.

The government is working to increase the size of the new offer, which is currently 10 times larger than the earlier proposal, in order to obtain a "fair" agreement.

The industry ministry spokesperson, Febri Hendri Antoni Arif, stated in a press release that the government's stance is to encourage a larger investment.

He stated that a larger investment would aid Indonesia's manufacturing sector growth, asserting that its domestic industry could sustain the production of Apple devices such as chargers and accessories.

Apple has a small market in Indonesia, but it also presents growth prospects due to its large population, as stated by Le Xuan Chiew, an analyst at Canalys who specializes in Apple strategy research.

The young, tech-savvy population of the country has growing digital literacy, which aligns with Apple's strategy to expand global sales. Additionally, this country offers potential for manufacturing and assembly that supports Apple's efforts to diversify its supply chain.

Apple's investment offer signifies a long-term approach to success in this market and a commitment to adhering to local regulations, thereby paving the way for future growth, he stated.