Indonesia banned Apple's iPhone 16 and Apple Watch Series 10 due to unmet investment promises. Apple initially pledged $109 million for local R&D but has fallen short. The Indonesian government seeks greater investment and inclusion in Apple's supply chain.
Indonesia's TKDN regulations mandate 4% local content for foreign companies. This can be achieved through local manufacturing, software development, or R&D. Apple has explored expanding accessories and component production in Indonesia to meet these requirements.
The Indonesian government has encouraged Apple to source parts like chargers and accessories from local suppliers. This move aims to boost job creation and economic growth. Additionally, the government has requested Apple to establish an Industry 4.0 R&D center focused on AI.
Apple's current investment falls short of the government's expectations. The company may need to increase its commitment to overturn the ban on the iPhone 16 and Apple Watch Series 10. For more on Apple's investment strategies, see Apple's Black Friday 2024 Deals.
This situation highlights the challenges faced by tech giants navigating international regulations. For related insights, explore Apple Boosts Indonesia Investment After iPhone 16 Ban and Smartphone Resale Hesitancy: Privacy and Profit Concerns.