Indonesia Indonesia. Indonesia said a $100 million investment offer from Apple to build an accessories and components plant was not enough for the country to allow the tech giant to sell its latest iPhone models, its industry ministry said on Monday. Indonesia in November banned the sale of Apple's iPhone 16 because it failed to meet requirements that smartphones sold domestically must have at least 40 percent locally made parts.
Indonesia has also banned the sale of Alphabet's Google Pixel phones over a similar lack of use of local components. Indonesian officials said last week that Apple had put forward an investment proposal to lift the sales ban. Industry Minister “We have made an assessment and it (the proposal) does not meet the principles of fairness,” Agus Gumiwang Kartasasmita said at a press conference, comparing the proposal to Apple's larger investments in neighboring Vietnam and Thailand.
Apple has no manufacturing facilities in Indonesia, but since 2018 it has set up application-developer academies, which Jakarta sees as a way for the company to meet the need for local content for sales of older iPhone models.Companies typically But increases the use of domestic components to meet such regulations by partnering with local suppliers or sourcing parts domestically. Agus said Apple has an outstanding investment commitment of $10 million that Should have been completed before 2023. He also wanted Apple to commit to new investments until 2026.
Agus said the ministry would invite Apple to visit Indonesia for further talks. The development comes soon after the iPhone maker proposed $100 million to set up a plant to manufacture its accessories and other components in the country. It happened later. The proposal came after the country banned the use of iPhone 16 imported from the foreign market within its borders. The Indonesian government's announcement follows Apple CEO Tim Cook's visit to Jakarta in April this year, in which he explored the possibility of manufacturing some Apple devices in the country with President Joko Widodo.
Comments are closed.