In recent months, the current government in Indonesia has banned the sale of Apple’s iPhones and Google’s Pixel phones in the country, stating that the necessary investment in the domestic economy has not been provided. The Indonesian government says both companies will be able to resell their products after the bans if they make the necessary investment.
Apple to invest about 109 million dollars in Indonesia
After the Indonesian government first banned the sales of the newly introduced iPhone 16 series in the country, the country’s administration turned its eyes to Google and the sales of Google’s latest phone, Google Pixel 9 series, were also banned in the country. After the bans, many citizens are turning to Asian-based phone models such as Xiaomi, Oppo, OnePlus, vivo, Nothing, while Apple has started working to avoid losing its existing market share. In the first agreements with Cupertino, the company promised to invest about 10 million dollars for the Indonesian government bans. Then, when issues such as local R&D facilities were included, Apple increased its default investment and promise by about 100 million dollars, bringing it to around 109 million dollars.
According to leaks, Indonesia’s Industry Minister Agus Gumiwang Kartasasmita may have found Apple’s offer insufficient in a closed public meeting and asked for an increase in the amount of investment in Indonesia. Ministry spokesperson Febri Hendri Antoni Arif said: “From a government perspective, of course we want this investment to be bigger. A larger investment would facilitate the development of Indonesia’s local manufacturing sector and help the country become part of Apple’s global supply chain. Under Indonesian law, foreign companies must maintain a Domestic Component Level of at least 40% in their products.
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If the foreign company does not use at least 40% local products in its products, the Indonesian government can prevent the foreign company from operating in the country with a ban. Foreign companies can fulfill the 40% limit in many ways such as software development, R&D centers, local product production within the country. Apple has so far completed $95 million of its $109 million investment promise to the Indonesian government due to the ban. New leaks from Cupertino say that the company wants to move the production of accessories such as cases to Indonesia. But there has been no official statement on the subject yet.
So do you think Apple will make the desired investment? Please don’t forget to leave your thoughts on this topic in the comments section below.
