It is reported that Apple will invest $100 million to lift the ban on iPhone 16 sales in Indonesia
According to media reports, informed sources have revealed that Apple has increased its investment in Indonesia by nearly 10 times, marking the latest attempt by the US tech giant to persuade the Indonesian government to lift the sales ban on the iPhone 16.
According to informed sources, under this proposal, Apple will invest nearly $100 million in Indonesia within two years. Previously, media reports stated that Apple's previous investment plan was close to 10 million US dollars, including investing in a factory manufacturing parts and components in Bandung, southeast Jakarta.
Insiders say that after Apple submitted an increased offer, the Indonesian Ministry of Industry is now requesting Apple to change its investment plan and focus more on its smartphone research and development in Indonesia. The Indonesian Ministry of Industry blocked the sales license for iPhone 16 in October, citing that Apple's local subsidiary PT Apple Indonesia did not meet the local production requirements for 40% of smartphone components. They also said that the Indonesian Ministry of Industry has not yet made a final decision on Apple's latest proposal.
After Apple's initial proposal, the Indonesian Ministry of Industry had Apple executives meet with Minister Agus Gumiwang Kartasasmita. But after flying to Jakarta, Apple executives were informed that the minister was not present, so they had to meet with the department's director general.
According to the Indonesian Ministry of Industry, Apple has only invested 1.5 trillion Indonesian rupiah (equivalent to 95 million US dollars) in Indonesia through its developer academy, far from the promised 1.7 trillion Indonesian rupiah. Due to the same lack of investment, Indonesia has also banned the sale of Google's Pixel phones.
These measures continue a similar strategy of former Indonesian President Joko Widodo. In 2023, Indonesia blocked China's ByteDance TikTok to protect its retail industry from low-cost Chinese made goods, prompting ByteDance to finally invest $1.5 billion to establish a joint venture with Tokopedia, the e-commerce department of GoTo Group in Indonesia.
It is reported that Apple does not have an independent factory in Indonesia, and like most multinational companies, Apple collaborates with local suppliers to produce components or finished products. By investing in Indonesia, Apple can more freely reach the approximately 278 million consumers in Indonesia, more than half of whom are under the age of 44 and keen on tracking new technologies.
Although Indonesia sees Apple's additional investment as a victory, its tough approach may hinder other companies from expanding their business or establishing a footprint in the region, especially those looking to relocate from China. This may also jeopardize the Indonesian government's goal of attracting overseas investment to develop the economy and provide funding for policy expenditures.
Insiders say that after Apple submitted an increased offer, the Indonesian Ministry of Industry is now requesting Apple to change its investment plan and focus more on its smartphone research and development in Indonesia. The Indonesian Ministry of Industry blocked the sales license for iPhone 16 in October, citing that Apple's local subsidiary PT Apple Indonesia did not meet the local production requirements for 40% of smartphone components. They also said that the Indonesian Ministry of Industry has not yet made a final decision on Apple's latest proposal.
After Apple's initial proposal, the Indonesian Ministry of Industry had Apple executives meet with Minister Agus Gumiwang Kartasasmita. But after flying to Jakarta, Apple executives were informed that the minister was not present, so they had to meet with the department's director general.
According to the Indonesian Ministry of Industry, Apple has only invested 1.5 trillion Indonesian rupiah (equivalent to 95 million US dollars) in Indonesia through its developer academy, far from the promised 1.7 trillion Indonesian rupiah. Due to the same lack of investment, Indonesia has also banned the sale of Google's Pixel phones.
These measures continue a similar strategy of former Indonesian President Joko Widodo. In 2023, Indonesia blocked China's ByteDance TikTok to protect its retail industry from low-cost Chinese made goods, prompting ByteDance to finally invest $1.5 billion to establish a joint venture with Tokopedia, the e-commerce department of GoTo Group in Indonesia.
It is reported that Apple does not have an independent factory in Indonesia, and like most multinational companies, Apple collaborates with local suppliers to produce components or finished products. By investing in Indonesia, Apple can more freely reach the approximately 278 million consumers in Indonesia, more than half of whom are under the age of 44 and keen on tracking new technologies.
Although Indonesia sees Apple's additional investment as a victory, its tough approach may hinder other companies from expanding their business or establishing a footprint in the region, especially those looking to relocate from China. This may also jeopardize the Indonesian government's goal of attracting overseas investment to develop the economy and provide funding for policy expenditures.