Apple offers $100 million to cancel Indonesia’s iPhone 16 ban
Apple has increased its offer to invest in Indonesia by almost tenfold in the company’s latest bid to persuade the government to lift its sales ban on the iPhone 16. Bloomberg News reports citing “people familiar with the matter.”
Faris Mokhtar for Bloomberg News:
The proposal would see Cupertino-based Apple invest almost $100 million in Southeast Asia’s largest economy over two years, the people said, asking not to be identified because they’re not authorized to speak publicly. Apple’s previous investment plan of close to $10 million would have involved the company investing in a factory making accessories and components in the city of Bandung, located southeast of Jakarta, Bloomberg News reported earlier.
After Apple submitted its increased offer, Indonesia’s Ministry of Industry, which last month blocked a permit allowing the sale of the iPhone 16, is now demanding that the technology behemoth alter its investment plans to focus more on research and development for its smartphones in the country, the people said. The Ministry of Industry hasn’t made a final decision on Apple’s newest proposal, they added.
Apple’s new investment proposal came after the Ministry of Industry last month blocked sales of the iPhone 16 on the grounds the US company’s local unit hasn’t met a 40% domestic content requirement for smartphones and tablets.
According to the Indonesian government, Apple has only invested 1.5 trillion rupiah ($95 million) in the nation via developer academies, falling short of a commitment of 1.7 trillion rupiah. The Southeast Asian nation has also banned the sale of Alphabet Inc.’s Google Pixel phones because of a similar lack of investment.
MacDailyNews Take: Apple will consider building an assembly facility in Indonesia, CEO Tim Cook said in April after meeting President Joko Widodo, who hoped the tech giant would increase its local production by partnering with domestic firms. Cook did not provide a timeline for investments into the country.
Please help support MacDailyNews — and enjoy subscriber-only articles, comments, chat, and more — by subscribing to our Substack: macdailynews.substack.com. Thank you!
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.
The post Apple offers $100 million to cancel Indonesia’s iPhone 16 ban appeared first on MacDailyNews.
