Tim Hardwick
The Indonesian government is insisting that Apple invest more than the recently proposed $100 million before the company will consider lifting a ban on sales of the iPhone 16 in the country, according to government officials on Thursday.
Industry Minister Agus Gumiwang Kartasasmita has held internal meetings to discuss Apple's offer, but a ministry official reportedly said the government expects a more substantial commitment from the company.
“From the government's perspective, of course we want this investment to be bigger,” Febri Hendry Antoni Arif told Antara News. The government is particularly keen for Apple to source components from domestic suppliers, suggesting it will create a “multiplier effect” for local employment.
Apple’s current $100 million offer is a significant increase from the initial $10 million offer made earlier this month, and includes plans to set up research and development centres and developer academies in Bali and Jakarta over a two-year period. The offer also outlines plans to manufacture the mesh components of the AirPods Max ear tips in Bandung from July 2025.
The current talks follow Indonesia’s October 28 ban on sales of the iPhone 16, imposed after authorities determined that Apple had failed to meet the country’s requirement for 40% domestic content in smartphones. The government also claims that Apple has only invested $95 million through developer academies, less than its previously promised commitment of $109.6 million.
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