Photo by AFP used for illustrative purposes
Indonesia has turned down a $100 million investment offer from Apple, aimed at lifting the ban on iPhone 16 sales, citing the lack of "fairness" required by the government. Last month, Indonesia prohibited the marketing and sale of the iPhone 16 model due to Apple's failure to comply with local investment regulations, which mandate that 40% of phones be made from local components. This move is part of the country's strategy to attract significant investments from major tech companies.
Following the ban, Apple proposed to boost its investments in Indonesia by $100 million to permit the domestic sale of the new phone. However, Industry Minister Agus Gumiwang Kartasasmita stated that Apple had not fulfilled the government's requirements, particularly when compared to the tech giant's investments in other nations. "Currently, Apple still has not invested in production facilities or factories in Indonesia," he noted in a statement issued late Monday.
The minister urged Apple to promptly establish a production facility or factory in Indonesia, adhering to the "fairness principles," to avoid having to submit an investment scheme proposal every three years. Despite the sales ban, the Indonesian government permits the import of iPhone 16 units for personal use, not for commercial trade. The government estimates that approximately 9,000 units of the new model have entered the country this way.
Indonesia also banned the sale of Google Pixel phones for not meeting the 40% parts requirement. Despite the ban, about 22,000 Google Pixel phones have been imported into the country this year.
Source link: https://www.khaleejtimes.com
