Indonesia’s Industry Minister Agus Gumiwang Kartasasmita reportedly held talks recently with Apple executives about the company’s potential investment in the Southeast Asian country.
This investment is essential for Apple to be able to sell the iPhone 16 locally, following a 2024 sales ban due to non-compliance with local content requirements, reported Reuters.
Presently, Apple lacks manufacturing plants in Indonesia, a market of 280 million people.
The iPhone 16 sales ban was enforced after the device did not meet the requirement that smartphones sold in the country must contain at least 40% locally sourced components.
Since 2018, Apple has established application developer academies in Indonesia, allowing it to sell older iPhone models despite the absence of manufacturing facilities.
The industry minister met Apple’s vice-president of global government affairs Nick Ammann and other executives to negotiate the new investment proposal of Apple.
“We do not set any time frame for a deal, but we have set a target for the substance of a deal,” Agus was quoted by the news outlet as saying.
In 2024, an Indonesian cabinet minister stated that Apple had offered to invest $1bn in a manufacturing plant to locally produce components for smartphones and other products.
This investment is aimed at complying local regulations and have the sales ban lifted.
While the industry minister declined to offer specifics on the country’s demands or the proposal by the company, he said hypothetically, “if it is $1bn, it is not sufficient.”
Following discussions with the Industry Ministry, Nick Ammann described the meeting as a “great discussion,” without providing further details, reported the media outlet.
Indonesia has previously stated that Apple is yet to fulfil a $10m investment commitment from its three-year investment plan in the country that concluded in 2023. To meet the local content requirements, Apple must make a new commitment for the 2024-2026 period.
“Apple executives discuss potential investment in Indonesia” was originally created and published by Verdict, a GlobalData owned brand.
Â
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
