Indonesia is expecting Apple to commit to a $1 billion investment in the country to lift its sales ban on the iPhone 16, according to a new Reuters report. A formal investment proposal could be made later this week.
Indonesia is expecting to get a $1 billion investment commitment from tech firm Apple Inc in a week, its investment minister said on Tuesday, after the government banned iPhone 16 sales for failing to meet local content rules. Indonesia stopped sales of the smartphone because it requires those sold domestically to comprise at least 40% locally-made parts, which it said Apple had not adhered to. Indonesia plans to increase this requirement, a deputy minister said on Tuesday.
“Whoever benefits from the sales must invest here, create jobs here. What’s important is how the global value chain moves here, because once it does, suppliers follow,” Rosan said, adding the investment commitment is part of a first phase.
Initially, Apple offered a $10 million investment to lift the ban. However, after being rejected, it increased its offer in November to nearly $100 million over the next two years. That offer was also rejected.
Indonesia is using similar strong-arm tactics with other companies like ByteDance and Alphabet. While these may work in the short term, long-term they may lead to less investment in the country especially as an alternative to China.
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; "Indonesia Expects $1 Billion Investment From Apple to Lift iPhone 16 Ban")
