Indonesia upholds iPhone 16 sales ban despite Apple’s $1 billion offer
Despite Apple’s commitment to invest $1 billion in Indonesia, the country upheld its ban on iPhone 16 sales on Wednesday due to a negotiation impasse over Apple’s failure to meet domestic market requirements.
AFP:
Indonesia in October prohibited the marketing and sale of the iPhone 16 model over Apple’s failure to meet local investment regulations requiring that 40 percent of phones be made from local parts as the country seeks to boost investments from giant tech companies.
Investment Minister Rosan Roeslani told reporters on Tuesday that Apple was fully committed to invest $1 billion to build an AirTag factory on Batam island, which was expected to supply 65 percent of the global supply.
It was unclear if the deal on the factory in the industrial zone had been signed.
“AirTag is an accessory, not a component or part of gadgets,” Industry Minister Agus Gumiwang Kartasasmita told a press briefing on Wednesday, referring to the Apple tracking device.
“Until this afternoon, the ministry doesn’t have any reason to issue the domestic component level certificate for Apple products, especially iPhone 16,” he said.
Agus met with Apple representatives on Tuesday, but he said a deal had not been reached.
He said Indonesian officials gave Apple a counterproposal and the giant phone maker did not give an immediate answer.
MacDailyNews Take: Sometimes bargains are driven hard.
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