Indonesia Maintains iPhone 16 Ban, Says Apple’s $1 Billion Investment Falls Short
Indonesia has refused to lift the ban on the sale of Apple’s iPhone 16. Indonesia’s Industry Minister Agus Gumiwang Kartasasmita said on Wednesday that the iPhone 16 will not be allowed to be sold in the country without meeting local production rules.
Apple has proposed to invest about $1 billion to set up an AirTag factory in Indonesia. However, the minister did not consider it “sufficient”. He says that Apple will have to start local production of iPhone or its components, only then will the sale be allowed.
Investment discussed between Apple and Indonesia
Indonesia’s Industry Minister met Apple’s Vice President of Global Government Affairs Nick Aman and other officials on Tuesday. Apple’s new investment proposal was discussed in this meeting. However, the minister declined to give exact details of the investment proposal or Indonesia’s demands.
By 2023, Apple had promised to invest $10 million in Indonesia as part of its three-year investment plan, which has not yet been fully implemented. Now Apple must present a new investment plan for 2024-2026.
Local Production Rules and Investment Requirements
To sell smartphones in Indonesia, it is mandatory that 40% of their parts are manufactured locally. At the moment, Apple has no manufacturing plant in Indonesia. However, since 2018, the company has set up an App Developer Academy in the country, which allowed the sale of older iPhone models.
Minister Agus made it clear that Apple’s $1 billion offer is not enough and the company needs to increase investment. The Indonesian government says iPhone 16 sales will only be possible if Apple meets local production rules.
Apple representative Nik Aman described the meeting as “positive”, but did not disclose any information. No timeline has been set on when the agreement between the Indonesian government and Apple will be reached.
Challenge Before Apple
The ban on the sale of iPhone 16 in Indonesia, which has a population of 280 million, is a big setback for Apple. This market is important for the company, but due to local production rules, it will have to increase its investment here.
Now it remains to be seen what agreement is reached between Apple and Indonesia and whether the iPhone 16 is allowed to be sold in Indonesia.
