According to reports, Apple Inc. is to extend its investments in Indonesia to USD 100 million (roughly IDR 1.57 trillion), which is ten times greater than the unique plan of USD 10 million. This investment goals to persuade the Indonesian government to lift the ban on the sale of the iPhone 16.
According to Bloomberg, Apple plans to speculate almost $100 million over two years, specializing in constructing an accessories and components factory in Bandung, southeast of Jakarta.
Apple is waiting for Indonesia’s decision
Apple has submitted a revised investment proposal to the Ministry of Industry looking for approval to sell the iPhone 16 in Indonesia. However, the Ministry of Industry suggested that the investment should focus more on the event of research and innovation in the sector of mobile devices within the country.
A report by Bloomberg shows that the Ministry of Industry has not yet made a call on the proposal.
Apple executives had previously scheduled a face-to-face meeting with Industry Minister Agus Gumiwang Kartasasmita. However, upon arrival in Jakarta, they were informed that the minister was unavailable and a gathering was held with the ministry’s director general as a substitute.
Neither Apple nor the Ministry of Industry has issued an official statement on the matter.
Apple faces a sales ban in Indonesia
Apple cannot sell the iPhone 16 in Indonesia since it doesn’t meet the required domestic component level standards (TKDN), that are mandatory for products sold within the country. Apple’s TKDN certificate has expired and the promised investment of IDR 1.7 trillion has not been fully realized as the corporate has only invested IDR 1.5 trillion thus far.
To obtain the brand new TKDN certification, Apple must partner with local manufacturers, develop applications in Indonesia or create an innovation program. The sales ban on iPhone 16 will remain in force until Apple meets its investment obligations and renews its certification.
Apple’s decision to extend its investment in Indonesia is aimed toward having access to the country’s market of 278 million consumers, greater than half of whom are under 44 and tech-savvy. However, it is just not yet clear which corporations will receive the investment. Apple typically works with partners similar to Foxconn to assemble and provide components for the iPhone and iPad.
