Tag: Ministry of Industry

Indonesia – Apple Inc. is reportedly planning a US$100m investment in Indonesia in an effort to convince the government to lift its sales ban on the iPhone 16. 

According to a Bloomberg report, sources familiar with the matter revealed that Apple has proposed increasing its investment tenfold to US$100m, a significant jump from its earlier commitment of approximately US$10m.

Apple’s earlier investment plan in Indonesia focused on establishing a factory in Bandung, southeast of Jakarta, to produce accessories and components. 

However, after Apple submitted its revised offer to increase the investment, Indonesia’s Ministry of Industry reportedly called on the tech giant to redirect its plans toward developing research and development capabilities for its smartphones within the country.

The unnamed sources noted that the Ministry of Industry has yet to make a final decision on Apple’s latest proposal.

Bloomberg further reported that after Apple’s initial proposal, the Ministry of Industry requested a meeting between senior company executives and Minister Agus Gumiwang Kartasasmita. However, upon their arrival in Jakarta, the executives were informed that the minister was unavailable and instead met with the ministry’s director-general.

Apple’s investment proposal follows last month’s decision by Indonesia’s Ministry of Industry to block domestic sales of the iPhone 16, citing the company’s failure to meet the country’s 40% local content requirement for smartphones and tablets.

Indonesia – Apple has reportedly been barred from marketing and selling its new iPhone 16 in Indonesia due to non-compliance with local investment regulations.

According to a report from Bloomberg, Indonesia’s Ministry of Industry has blocked the domestic sale of the iPhone 16, citing PT Apple Indonesia’s failure to meet the country’s 40% local content requirement for smartphones and tablets.

To meet Indonesia’s local content requirements, Apple must invest in the country. Additional strategies include sourcing materials locally and employing Indonesian workers.

However, in early October, a ministry spokesperson disclosed that Apple had invested only 1.5 trillion rupiah ($95 million) in Indonesia, falling short of its pledged 1.7 trillion rupiah.

Notably, Apple has established four developer academies in Indonesia instead of setting up a manufacturing facility. However, in April, CEO Tim Cook mentioned that the company was exploring the feasibility of local production.

The ministry disclosed that approximately 9,000 iPhone 16 units have entered Indonesia, brought in by travellers or delivered by post. While these devices are permitted for personal use, they are strictly prohibited from being sold commercially.

Although purchasing the iPhone 16 from abroad is an option, Bloomberg noted that this path may be challenging for Indonesian buyers. Since 2020, Indonesia has required all phones bought overseas to be registered with the government and subjected to a significant tax.

The ministry also clarified that Apple’s older products remain available for sale in Indonesia.