We stated that iPhone 16 sales were banned throughout Indonesia. While the disputes between Apple and the Indonesian government were expected to be resolved in a short time, Apple finally decided to invest. Accordingly, 10 million dollars will be allocated to the country.
Apple will invest 10 million dollars for Indonesia
The Indonesian government continues to take a harsh stance on the new generation of Apple devices due to the investment dispute with Apple. The country’s Minister of Industry, 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 working in Indonesia is detected, I can say that it is illegal. “Let us know about these devices,” he said. This decision covered not only the iPhone 16 but also new Apple products such as the 16 Pro series and Apple Watch Series 10.
Apple plans to establish a new factory with an investment of 10 million dollars to solve this crisis. This facility will be implemented thanks to Apple’s partnership with local suppliers. However, it is unclear whether this investment will be enough to meet the 40% local content requirement set by Indonesian President Prabowo Subianto’s administration and lift the ban. Authorities are still evaluating the matter.
Google’s Pixel series also faces a similar situation. Although Google remained silent, Apple did not take this risk. It continues the negotiations because 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 deter foreign investments. Earlier this year, import restrictions on various products negatively affected 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 implemented strategies are questioned.
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