JakartaPost-Nov 26, 2024
A US$100 million investment bid from Apple Inc. has failed to convince the government to revoke a ban on sales of the new iPhone 16 in Indonesia. Southeast Asia’s largest economy expects the United States tech giant to not only view Indonesia as a market for its devices but also consider it as a production base and a part of its global supply chain. Industry Minister Agus Gumiwang Kartasasmita told reporters on Monday that the offer received on Nov. 18 paled in comparison with Apple’s investments in smaller markets of the region, such as Vietnam and Thailand. “We have done an assessment, and this [proposal] does not meet principles of fairness,” Agus said. For instance, Apple has invested significantly more in Vietnam, pouring over Rp 244 trillion (US$15.4 billion) into manufacturing facilities there, despite lower sales at around 1.5 million units, he said.
Indonesia led Southeast Asia in iPhone sales with 2.5 million units sold, generating Rp 30 trillion in revenue, according to the ministry’s data. Apple had only invested about Rp 1.5 trillion in developer academies in Indonesia, including its 2020-2023 contract, falling short of its Rp 1.7 trillion pledge, the minister added. Agus called the $10 million discrepancy “so small,” yet a significant sticking point for the California-based tech firm to trade its new iPhone handsets in the country, as the minister emphasized that meeting prior commitments was essential. The government has prohibited the sale of iPhone 16 devices in the country, having found that Apple was not compliant with a rule that its products meet a 40-percent local content requirement. Apple agreed with the government to satisfy Indonesia’s local content requirement in 2018 by establishing application developer academies as a substitute for manufacturing facilities. Read more at:
