Indonesia has rejected Apple’s proposal to invest $100 million in building an accessory and component plant, citing concerns over fairness in comparison to the company’s larger investments in other Southeast Asian countries, such as Vietnam and Thailand.
The rejection is tied to a sales ban on the iPhone 16 in Indonesia, which stems from a regulation that mandates smartphones sold in the country must contain 40% local content. Despite the proposal, Industry Minister Agus Kartasasmita emphasized that Apple still has an outstanding $10 million investment commitment, which the company has yet to fulfill.
Minister Kartasasmita also called for new investment commitments from Apple through 2026, signaling that the company would need to offer more substantial investment proposals in order to resolve the issue and lift the sales ban.
Negotiations between Indonesia and Apple are still ongoing, and the government has urged Apple to provide clearer commitments that align with the country’s long-term economic goals.
Key Points:
- Indonesia Rejects Proposal: Indonesia has rejected Apple’s $100 million investment proposal to build an accessory and component plant, citing fairness concerns.
- Sales Ban: The rejection is linked to a sales ban on the iPhone 16, stemming from a regulation requiring 40% local content in smartphones sold in Indonesia.
- Outstanding Commitment: Industry Minister Agus Kartasasmita highlighted that Apple still owes a $10 million investment commitment and called for new commitments through 2026.
- Fairness Concerns: The Indonesian government expressed concerns that Apple’s investment in Indonesia is smaller compared to its larger investments in Vietnam and Thailand.
- Ongoing Talks: Negotiations between Indonesia and Apple are continuing, with the government seeking more substantial investment commitments from the company.
4o mini
