Indonesia says Apple’s $100 million investment proposal is inadequate

Indonesia has rejected Apple’s $100 million investment proposal as insufficient to allow the sale of the iPhone 16 in the country. The Southeast Asian nation imposed a ban on the iPhone 16 in November due to Apple’s failure to meet local content requirements, which stipulate that at least 40% of smartphone components must be manufactured domestically.
Reuters:
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“We have done an assessment and this (proposal) has not met principles of fairness,” Industry Minister Agus Gumiwang Kartasasmita told a press conference, comparing the proposal to Apple’s bigger investments in neighboring Vietnam and Thailand.
Agus said Apple had an outstanding investment commitment of $10 million it should have carried out before 2023. He also wanted Apple to commit to new investment until 2026.
The ministry would invite Apple to visit Indonesia to negotiate further, Agus said.

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MacDailyNews Note: While Apple doesn’t have manufacturing facilities in Indonesia, it has established application-developer academies since 2018. The Indonesian government considers these academies as a partial fulfillment of local content requirements for older iPhone models.
MacDailyNews Take: Apple will figure this out.
The company is already considering building an assembly facility in Indonesia, as CEO Tim Cook said in April after meeting President Joko Widodo, who hoped the tech giant would increase its local production by partnering with domestic firms. While Cook did not provide a timeline for investments into the country, it’s likely been accelerated now.

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