Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, has reportedly held talks with Apple officials about the company's possible investment in the Southeast Asian country.
This investment is essential so that Apple can sell the iPhone 16 locally, following a sales ban in 2024 due to non-compliance with local content requirements, it has been reported. Reuters.
Currently, Apple has no manufacturing facilities in Indonesia, a market of 280 million people.
The iPhone 16 sales ban was implemented after the device failed to meet the requirement that smartphones sold in the country must contain at least 40% local components.
Since 2018, Apple has established application developer academies in Indonesia, allowing it to sell older iPhone models despite the lack of manufacturing facilities.
The industry minister met with Apple's vice president of global government affairs Nick Ammann and other officials to negotiate Apple's new investment proposal.
“We are not setting any timetable for a contract, but we have set a target for the content of a contract,” the press service said and said.
In 2024, Indonesia's cabinet minister said that Apple has offered to invest $1bn in a manufacturing plant to locally produce components for smartphones and other products.
This investment aims to comply with local regulations and lift the sales ban.
Although the industry minister refused to offer details about the country's demands or the company's proposal, he said tentatively, “if it's $1bn, that's not enough. “
After talks with the Ministry of Industry, Nick Ammann described the meeting as “a big discussion”, without giving further details, the media said.
Indonesia has previously stated that Apple has not yet fulfilled a $10m investment commitment from its three-year investment plan in the country that ended in 2023. In order to meet local content requirements, Apple must make a new commitment for the h -period 2024-2026.
“Apple officials discuss possible investment in Indonesia” was originally created and published by Birtha brand owned by GlobalData.
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