iPhone ban: Apple offers $100 million investment in Indonesia

In Apple’s clash with the Indonesian government over lack of investment, a compromise appears to be in place: the company plans to invest up to US$100 million in local offices and research centers to resell its iPhone 16 in the fourth Is. Could be the largest country in the world. According to the report, this would be a tenfold increase over the originally planned investment amount. financial news agency bloomberg,

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Apple announced in the spring that it wanted to invest a lot of money in new facilities and locations in Vietnam, Singapore and Indonesia. The aim is to become less dependent on China, but also to open up large new markets in emerging regions of the world. Despite Apple boss Tim Cook’s visit to Jakarta, the promised $10 million did not flow into new locations for the production of accessories and components in Indonesia. Why this did not happen is still unclear.

In any case, the country’s Ministry of Industry reacted immediately and “banned” the iPhone 16 by denying the devices the necessary approvals. This means: Apple can’t sell its latest and most expensive iPhones in the country. To smooth things over, Apple has now introduced new plans and increased the figure to 100 million. Sources in the know told this to Bloomberg. However, the Industry Ministry now wants Apple to invest less money in factories in Indonesia (which will then be built by manufacturing partners) and more money in research and development. Accordingly, a final decision on approving the iPhone 16 has not been taken yet.

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282 million inhabitants

The new iPhones were not initially released with IMEI (International Mobile Equipment Identity) for Indonesia. Minister Agus Gumiwang Kartasasmita said, “We, the Industry Ministry, cannot issue these approvals for the iPhone 16 because Apple has not yet fulfilled its obligations.” There is also a ban on operating iPhone 16 models in the country. This incident shows how aggressive industrial policy is now being adopted in the emerging economic countries of Asia.

Indonesia is the largest economy in Southeast Asia, the largest Islamic country on the planet and, as mentioned, the fourth largest country on Earth. India is also increasingly flexing its muscles towards Western corporations and linking market access with calls for investment. Indonesia currently has about 282 million inhabitants, half of whom are under the age of 44 – and so they are often very interested in technology. Apple has not yet commented on the matter.

(B.Sc.)