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Indonesian minister says Apple will now build iPhone component factory in country, potentially lifting iPhone 16 ban
Previously on Indonesia vs. Apple… Apple has been skirting the country's requirement that 40% of the components in its phones be made locally. That's an impractical requirement for any country, and the government seemed to know it because it allowed Apple to sell iPhones there by running developer centers instead.
However, according to Reuters, the country's six-week ban on iPhone 16 sales could be lifted by meeting that 40% component requirement. Rozan Ruslan, Indonesia's investment minister, who announced Apple would build the new plant, also said the 40% requirement would be increased.
The minister did not say what the new figure would be, when it might be raised, or why. For its part, Apple has said nothing at all about making anything in Indonesia since Tim Cook promised to consider it.
That $1 billion plant announcement is at least in line with how much Ruslan said Apple would invest in the country. Apple also did not comment on this.
In its first attempt to resolve Indonesia's iPhone 16 ban, Apple offered a token investment of $10 million. Rather than entirely new money, this would have basically meant that Apple would actually honor its previous commitments to the country.
The Indonesian government rejected that offer, and then reportedly also rejected a follow-up offer of $100 million over two years.
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