Indonesia does not think Apple’s US$100 million investment is enough

Indonesia does not think Apple’s US0 million investment is enough

2024-11-22 16:08:00

After presenting a proposal (somewhat timid, it’s true) for investment in the country and then increasing the proposed amount by no less than ten times, the Apple may have to spend even more money to be able to continue selling the iPhones 16 no Indonesiawhich banned them at the end of October — just over a month after their launch.

In case you are out of touch with this mess, the government of the Asian country decided to stop the sale of new smartphones from Apple — and Google — in its territory after the company failed to meet the minimum limit of 40% use of national components on your devices. To reverse this decision, Apple could manufacture iPhones, develop applications or invest in research and product development in Indonesia.

The company even chose the latter option, but failed to make the necessary investments. It recently increased its $10 million proposal, made earlier this month, to US$100 million with the intention of selling the iPhones 16 again in Indonesia, but that still may not be enough.

According to information from the local news agency Between Newsmembers of the Indonesian Ministry of Industry met yesterday with Apple representatives to discuss the new proposal. The body, however, would have asked Maçã to invest even more money in the country, saying that this would have a positive impact on job creation.

Second Febri Hendri Antoni Arifspokesperson for the ministry, greater investment would mainly help the country’s manufacturing sector, which would already have the necessary structure to produce some of Apple’s products, such as chargers and other accessories. He, however, also probed other possibilities:

Although we are not yet able to produce semiconductors, if Apple needs them, they could source components from domestic suppliers. Of course, we would be eager to support this. This would create a multiplier effect, particularly in terms of labor absorption in Indonesia.

Apple’s plan, it is worth noting, already included the production of the AirPods Max mesh in the country, as well as a factory in Bandung (southeast of Jakarta). The local government, however, also invited the company to establish a development research center focused on industry 4.0, with an emphasis on artificial intelligence technologies.

Let’s wait for the next developments, so…

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via CNBC

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