Apple has increased its offer to invest in Indonesia in an effort to get the country's ban on iPhone 16 sales lifted, according to Bloomberg.
The proposal would see Cupertino-based Apple invest almost $100 million in Southeast Asia's largest economy over two years, the people said, asking not to be identified because they're not authorized to speak publicly. Apple's previous investment plan of close to $10 million would have involved the company investing in a factory making accessories and components in the city of Bandung, located southeast of Jakarta, Bloomberg News reported earlier.
Last month, Indonesia's Ministry of Industry blocked a permit that would have allowed sales of the iPhone 16 because Apple hadn't met a 40% domestic content requirement for smartphones and tablets.
Following Apple's initial proposal of a $10 million investment, the ministry asked for senior executives to meet Minister Agus Gumiwang Kartasasmita. However, after flying into Jakarta, Apple executives were told that the minister wasn't available and they had to meet with the ministry's director-general instead.
In response to the new offer, the ministry is demanding that Apple alter its investment plans to focus more on smartphone research and development. A final decision on the proposal has yet to be made.
Indonesia is using similar strong-arm tactics with other companies like ByteDance and Alphabet. While these may work in the short term, long-term they may lead to less investment in the country especially as an alternative to China.
More details in the full report linked below...
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[Minister Agus Gumiwang Kartasasmita]
The proposal would see Cupertino-based Apple invest almost $100 million in Southeast Asia's largest economy over two years, the people said, asking not to be identified because they're not authorized to speak publicly. Apple's previous investment plan of close to $10 million would have involved the company investing in a factory making accessories and components in the city of Bandung, located southeast of Jakarta, Bloomberg News reported earlier.
Last month, Indonesia's Ministry of Industry blocked a permit that would have allowed sales of the iPhone 16 because Apple hadn't met a 40% domestic content requirement for smartphones and tablets.
Following Apple's initial proposal of a $10 million investment, the ministry asked for senior executives to meet Minister Agus Gumiwang Kartasasmita. However, after flying into Jakarta, Apple executives were told that the minister wasn't available and they had to meet with the ministry's director-general instead.
In response to the new offer, the ministry is demanding that Apple alter its investment plans to focus more on smartphone research and development. A final decision on the proposal has yet to be made.
Indonesia is using similar strong-arm tactics with other companies like ByteDance and Alphabet. While these may work in the short term, long-term they may lead to less investment in the country especially as an alternative to China.
More details in the full report linked below...
Read More
[Minister Agus Gumiwang Kartasasmita]