An iPhone 16 sign is seen in the window of the Apple Store on Fifth Avenue on New York City’s new product launch day, September 20, 2024.
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The Indonesian government hopes apple The move comes as the iPhone maker seeks permission from Jakarta to sell its latest phones, state media said, as it increases its $100 million investment plan in the country.
The American tech giant’s latest smartphone model does not meet Indonesia’s 40% domestic content requirements for smartphones and tablets and has not been approved for sale in the country.
The purpose of the ban is to protect local industry and jobs, and authorities are calling on Apple to increase its investment and involvement in the economy to expand access.
Indonesia’s Ministry of Industry met with Apple representatives on Thursday regarding Apple’s proposal to invest $100 million over two years, according to a report in Indonesian state media.
According to the report, the funds will be earmarked for domestic research and development center programs and professional development academies.
The company also added that it plans to produce accessory product components, particularly mesh for Apple’s AirPods Max, starting in July 2025.
Apple did not immediately respond to a request for comment from CNBC.
The new proposal is 10 times larger than previously reported proposals, but the government is still working to further strengthen the deal in order to get a “fair” commitment.
“From the government’s point of view, we hope that this investment will be even larger,” Industry Ministry spokesman Febri Hendry Antoni Arif told state media on Thursday.
He said greater investment would help develop Indonesia’s manufacturing industry, adding that the domestic industry could help produce Apple devices such as chargers and accessories.
Le Xuan Chiew, an analyst at Canalys who focuses on Apple strategic research, said Indonesia is a small market for Apple, but as the world’s fourth most populous country, it also offers growth opportunities.
“A young, tech-savvy population with increasing digital literacy is consistent with Apple’s expansion strategy.” [global sales]”, he said, noting that it also offers manufacturing and assembly possibilities that support Apple’s efforts to diversify its supply chain.
He added that success in this market requires a long-term approach, and Apple’s investment proposal demonstrates a commitment to comply with local regulations and pave the way for future growth.
