Indonesia’s Industry Minister Agus Gumiwang Kartasasmita is reported to have recently held talks with Apple officials regarding the company’s possible investment in the Southeast Asian country.
This investment is essential for Apple to be able to sell the iPhone 16 in the region, following a 2024 sales ban due to non-compliance with local content requirements, it has been reported. Reuters.
Currently, Apple has no manufacturing plants in Indonesia, a market of 280 million people.
The iPhone 16 sales ban was implemented 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 development centers in Indonesia, allowing it to sell older iPhone models despite the absence of production facilities.
The industry minister met with Apple’s vice president for global government affairs Nick Ammann and other executives to discuss a new investment proposal for Apple.
“We are not setting a time for the agreement, but we have set a goal for the content of the agreement,” Agus was quoted by the newspaper.
By 2024, Indonesia’s cabinet minister said Apple has promised to invest $1bn in a manufacturing plant to produce parts for smartphones and other products locally.
This investment is intended to comply with local regulations and remove sales restrictions.
Although the industry minister declined to provide details on the country’s needs or the company’s proposal, he said he thought, “if it’s $1bn, it’s not enough.”
After talks with the Ministry of Industry, Nick Ammann described the meeting as “a big discussion,” without giving further details, the media reported.
Indonesia has said that Apple is yet to fulfill its $10m investment commitment in its three-year investment plan in the country that ends in 2023. To meet local content requirements, Apple must make a new commitment in the period 2024-2026.
“Apple executives discuss potential investment in Indonesia” was originally created and published by Verdict, a product owned by GlobalData.
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