Indonesia Lifts iPhone 16 Ban After Approving Apple’s $1 Billion Investment Plan
Indonesia has approved Apple’s $1 billion investment plan, following which the ban on the sale of iPhone 16 in the country will be lifted. The decision was taken by Indonesian President Prabowo Subianto after an agreement between the government and Apple.
Why Was the Ban Imposed?
Last month, Indonesia banned the sale of the iPhone 16, saying that Apple did not comply with the country’s domestic content rules related to smartphones and tablets.
Apple’s $1 Billion Investment Plan
Apple proposed a $1 billion investment plan to the Indonesian government. Under this plan:
- AirTag factory in Batam: An AirTag factory will be set up by an Apple supplier on Batam Island, where about 1,000 people will be employed in the initial phase. The factory will contribute 20% of the global production of AirTags. Due to Batam’s free-trade zone status, companies here will get exemptions in value-added tax, luxury tax and import duties.
- New factory in Bandung: Another factory will be built in Bandung, which will produce other types of accessories.
- Apple Academy: Apple will also fund the Apple Academy to teach technology-related skills in Indonesia.
Government’s Attitude
President Prabowo Subianto approved the investment proposal and directed his cabinet to attract more foreign investment. However, the government has not yet given a timeline for starting sales of the iPhone 16.
What is the Significance?
This investment by Apple will help it reach Indonesia’s 278 million tech-savvy consumers. Along with this, it will also strengthen Indonesia’s “Made in Indonesia” policy. However, experts believe that these types of strategies may scare other foreign companies.
The deal is considered a major victory for President Prabowo, who is striving to bring more foreign investment to the country.
