25-11-2024 (JAKARTA) Indonesian officials have deemed Apple’s proposed $100 million investment package insufficient to lift the country’s ban on the tech giant’s latest iPhone model, the nation’s Industry Ministry announced yesterday.
The rejection comes amid Indonesia’s broader push to boost domestic manufacturing, with Minister Agus Gumiwang Kartasasmita expressing disappointment over the scale of Apple’s proposition during a press briefing in Jakarta.
“Upon thorough evaluation, the proposal falls short of our expectations regarding fair investment practices,” Minister Kartasasmita stated, drawing comparisons with Apple’s more substantial commitments in neighbouring Thailand and Vietnam.
The world’s largest technology company has found itself caught in Indonesia’s regulatory net since November, when authorities prohibited the sale of the iPhone 16 for failing to meet the nation’s local content requirements. Current regulations stipulate that 40% of smartphone components must be sourced or manufactured locally.
The sales prohibition extends beyond Apple, affecting other global tech firms including Google, whose Pixel smartphones face similar restrictions under Indonesia’s protectionist policies.
While Apple maintains developer academies in Indonesia since 2018—which Jakarta has previously accepted as partial fulfilment of local content requirements for older iPhone models—the company lacks manufacturing facilities in the archipelago nation.
Minister Kartasasmita revealed that Apple had failed to honour a previous $10 million investment commitment due by 2023. The ministry is now seeking extended investment guarantees through 2026 and has extended an invitation to Apple executives for further negotiations.
