We have stated that iPhone 16 sales are banned throughout Indonesia.While the disputes between Apple and the Indonesian government are expected to be resolved in a short time, Apple has finally decided to invest. Accordingly, it will allocate $ 10 million to the country.
Apple will invest $10 million for Indonesia
The Indonesian government continues to take a tough stance on the new generation of Apple devices due to the investment dispute with Apple. The country’s Industry Minister Agus Gumiwang Kartasasmita banned the sale of the iPhone 16 on the grounds that it did not meet regulatory rules.
Minister Kartasasmita said, ‘If any iPhone 16 device operating in Indonesia is detected, I can say that it is illegal. Report these devices to us,’ he said. This decision covered not only iPhone 16, but also new Apple products such as the 16 Pro series and Apple Watch Series 10.
Apple plans to build a new factory with an investment of $ 10 million to solve this crisis. This facility will be realised through Apple’s partnership with local suppliers. However, it is unclear whether this investment will be enough to meet the 40% local content requirement imposed by the Indonesian President Prabowo Subianto administration and lift the ban. Authorities are still evaluating the issue.
Google’s Pixel series is also facing a similar situation. Although Google is keeping silent, Apple did not take this risk. It continues negotiations as it will feel the negative impact of losing a large market like Indonesia more than Google.
On the other hand, there are concerns that Indonesia’s policy may discourage foreign investment. Earlier this year, import restrictions on various products had a negative impact on the production of companies such as LG Electronics. Indonesia’s share of local production has also declined in recent years and the results of the strategies implemented are being questioned.