Apple Is Offering An Investment Of IDR 1.5 Trillion As It Prepares To Sell The IPhone 16 In Indonesia

AP Photo/Juliana Yamada

Apple Is Offering An Investment Of IDR 1.5 Trillion As It Prepares To Sell The IPhone 16 In Indonesia

, 24 Nov 2024

Apple is reportedly proposing an investment of US$ 100 million, equivalent to Rp 1.58 trillion (at an exchange rate of Rp 15,800), to the Indonesian government. This amount represents a tenfold increase from the initial plan of US$ 10 million or Rp 158 billion.

According to Bloomberg, on November 19, 2024, this initiative aims to enable the legal sale of its latest product, the iPhone 16, in Indonesia.

The investment of US$ 100 million is expected to be executed over a two-year period. Previously, it was indicated that Apple intended to invest only US$ 10 million to establish a factory for accessories and components in Bandung. Following Apple's proposal to increase its investment, the Ministry of Industry, which had blocked the sales permit for the iPhone 16 last month, is now demanding that Apple revise its investment plans. The technology giant has been urged to concentrate on research and development investments for its mobile devices in Indonesia.

Meanwhile, the Ministry of Industry has yet to make a decision regarding Apple's investment proposal. Apple representatives have met with officials from the Directorate General at the Ministry but did not meet with Minister Agus Gumiwang Kartasasmita.

Both Apple and the Ministry of Industry have not responded to requests for comments.

Apple's new investment proposal comes after the Ministry of Industry blocked the sale of the iPhone 16 last month, citing that the local units of the American company had not met the domestic content requirement of 40% for smartphones and tablets.

The Indonesian government has stated that Apple has only invested Rp 1.5 trillion through the establishment of an academy and has not fulfilled its initial investment commitment of Rp 1.7 trillion. In addition to the iPhone 16, the Ministry of Industry has also prohibited the sale of Google Pixel phones from Alphabet Inc. due to a similar lack of investment.