Apple to offer additional investments in Indonesia to remove iPhone ban
Last month, Indonesia imposed a ban on the sale of Apple’s latest iPhone 16 models due to the company’s failure to meet local investment requirements. The Indonesian Ministry of Industry stated at the time that Apple’s local subsidiary, PT Apple Indonesia, “has not fulfilled its investment commitment,” which is a prerequisite for selling the new iPhone model in the country. Now, the company will increase investments in the country to remove the ban.
Faris Mokhtar for Bloomberg News:
Apple Inc. has proposed investing almost $10 million to make additional goods in Indonesia, according to people familiar with the matter, as it seeks to have the country’s ban on sales of its latest iPhone removed.
The plan would involve Apple investing in a factory in Bandung, southeast of Jakarta, in partnership with its list of suppliers, the people said, asking not to be identified because they’re not authorized to speak publicly. The facility would make products such as accessories and components for Apple gadgets, the people said.
Apple has submitted its proposal to the nation’s Ministry of Industry, which last month blocked a permit allowing the sale of the iPhone 16 on grounds the US tech giant’s local unit hasn’t met a 40% domestic content requirement for smartphones and tablets.
The ministry is deliberating on the proposal, which isn’t final and may be subject to change, and is expected to reach a decision shortly, the people said.
MacDailyNews Note: Indonesia has also banned the sale of Alphabet subsidiary Google’s “Pixel” phones because of a similar lack of investment.
MacDailyNews Take: How Apple will manage to scrape together “almost $10 million” is anybody’s guess.
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