The Indonesian government reportedly branded an Apple offer to invest $100 million in the country as unfair, as a row between the state and the iPhone maker rumbled on.
Apple made the offer last week in response to Indonesia’s Ministry of Industry banning iPhone 16 sales because the line did not meet a requirement for 40 per cent of components in the devices to be locally made.
However, it appears the proposed investment will not be enough to squash the issue.
Bloomberg reported industry Minister Agus Gumiwang Kartasasmita said the amount does not meet “fairness principles”, pointing to the fact Apple had invested significantly more in other countries.
Kartasasmita apparently highlighted an IDR244 trillion ($15.4 billion) investment in manufacturing facilities in Vietnam as an example, compared with an IDR1.5 trillion outlay in Indonesia.
The Minister added rival phone makers including Samsung and Xiaomi had also invested significantly more in Indonesia than Apple has, or plans to.
“We want Apple to return to do business here, but we need a fair resolution,” he said.
Apple pledged to invest IDR1.7 trillion in 2023, but fell short of the target, with IDR1.5 trillion invested so far, the minister noted.
The minister said it wants Apple to deliver the remaining sum it promised, which amounts to around $10 million, as well as sweeten its $100 million offer.
