Indonesian government expects Apple to invest more than $100M to bypas iPhone 16 ban | Infinium-tech

The iPhone 16 series was banned in Indonesia last month due to Apple’s unfulfilled investment commitments in the country. Cupertino responded with a pledge to invest $10 million, followed by a second pledge to increase the figure by an additional $100 million, which would meet the initial committed amount of IDR 1.71 trillion ($109 million) in local R&D facilities. .

It seems that Apple’s increased investment commitments are still insufficient. Indonesia’s Industry Ministry reportedly rejected Apple’s proposal in an internal meeting chaired by Minister Agus Gumiwang Kartasasmita. According to a spokesperson, the local government wants Apple to invest more and make Indonesia part of its global supply chain.

From the government’s point of view, of course, we want this investment to be big. A major investment will facilitate the development of Indonesia’s domestic manufacturing sector, helping the country become part of Apple’s global supply chain. – Fabry Hendry Antoine Arif, ministry spokesperson

Indonesian law states that foreign companies must provide 40% local content to operate in the country as part of Domestic Component Level (TKDN) certification. Companies can meet those needs by manufacturing products locally, developing software locally or setting up research and development centres.

Apple originally promised to invest more than IDR 1.71 trillion ($109 million) in local R&D facilities, but has only invested IDR 1.48 trillion ($95 million). Apple has reportedly considered expanding the production of its accessories and components in Indonesia, which appears to be what the local government wants. Apple is now facing an indefinite ban on its iPhone 16 and Apple Watch 10 series in Indonesia due to not meeting the investment criteria.

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