Indonesia Rejects Apple's $100M Investment, iPhone 16 Sales Ban Remains
Indonesia has rejected Apple's $100 million investment proposal, upholding the ban on iPhone 16 sales. The government deems the offer insufficient compared to Apple's investments in other Southeast Asian countries, particularly Vietnam.
Indonesia's Industry Minister, Agus Gumiwang Kartasasmita, criticized the disparity between Apple's $15 billion investment in Vietnam and the comparatively smaller $94 million investment in Indonesia, despite higher sales volumes in the latter.
The core issue lies in Apple's non-compliance with local regulations, which mandate at least 40% locally-sourced components for smartphones sold in Indonesia. The government is urging Apple to establish a manufacturing facility within the country, similar to Samsung and Xiaomi.
While Apple CEO Tim Cook expressed interest in exploring Indonesian manufacturing during an April visit, no firm plans materialized. This situation underscores Indonesia's commitment to bolstering domestic manufacturing and its position in global supply chains. For more on Apple's activities, see Apple App Store Lawsuit Expands in UK.
The ongoing standoff necessitates a compromise that aligns Indonesia's industrial ambitions with Apple's regional strategy. You can also read about Apple M5 Chip Production Begins for Next-Gen Devices for more insights into Apple's production plans. For related news on other tech giants, check out Xiaomi HyperOS 2 Update Expands to More Devices.