Apple Proposes $100 Million Investment to Overcome Indonesia’s iPhone 16 Ban
Apple is seeking for an approval from the Indonesian government to be able to sell its product in the country. The Government has in return asked Apple to increase its $100 million proposal in the country.
Challenges with Domestic Manufacturing Criteria
According to CNBC, the latest iPhones do not meet Indonesia’s 40% domestic manufactured criteria. The tech giant has made the proposal to build a manufacturing plant in the country so as the Indonesian government lifts the ban on the Apple’s iPhone 16.
The ban has been implemented to promote local products and industries while also increasing foreign investment in the country.
Details of Apple’s $100 Million Proposal
The government officials met Apple’s representative on Thursday, 21st November 2024, for the investment of $100 million in the Indonesian economy over next two years.
In October 2024, Tim Cook visited China as well to talk about the new intelligence feature rollout and to partner with the local manufacturers.
As per report, the $100 million investment from Apple will go to building research and development centers. Also, these funds will also be invested in building a professional training academy in the country. Additionally, the U.S. tech giant is also planning to manufacture accessory product components for AirPods Max from July 2025.
Ongoing Negotiations for a Better Offer
While Apple’s new proposal is 10 times bigger than the originally given offer, the government is still negotiating with the company for a better offer.
Febri Hendri Antoni Arif, the spokesperson for the industry ministry told the local media, “From the government’s perspective, of course, we want this investment to be larger.” He added that the larger investment would help in the growth of the Indonesian manufacturing sector. He also said that the local industry is capable of supporting the production of other Apple accessories like chargers.
Indonesia’s Potential as a Key Market
According to Le Xuan Chiew, a Canalys analyst focusing on Apple strategy research, even though Indonesia represents a small section of Apple’s market, it has a huge potential of growth as it is world’s fourth largest population. He also said, “Its young, tech-savvy population with growing digital literacy aligns with Apple’s strategy to expand [global sales].”
