INDONESIA, 06/11/2024 (Asia News Channels) - Apple Inc. has proposed an investment of nearly US$10 million to manufacture more products in Indonesia, as it works to lift a ban on sales of its latest iPhone model in the country, according to sources familiar with the matter as reported by Bloomberg.
The proposal outlines plans for Apple to partner with local suppliers to establish a factory in Bandung, located southeast of Jakarta. The facility would manufacture accessories and components for Apple products, the sources said, requesting anonymity as they were not authorized to discuss the details publicly.
Apple submitted the investment plan to Indonesia’s Industry Ministry after the government blocked the iPhone 16 from sale last month. The ban stems from Apple’s local unit failing to meet a 40% domestic content requirement for smartphones and tablets, which the government mandates to boost local production.
The Industry Ministry is currently reviewing the proposal, which remains tentative and could be adjusted. Both Apple and the ministry declined to comment.
Indonesia’s restriction on the iPhone 16 sale is part of a broader push by President Prabowo Subianto’s administration to encourage international companies to invest in domestic manufacturing. Recently, Alphabet Inc.’s Google Pixel phones faced a similar ban due to unmet local investment requirements. The policy is in line with tactics seen under former President Joko Widodo, aimed at reducing foreign competition for Indonesian industries.
Apple currently relies on partnerships with local suppliers, as it has no standalone factories in Indonesia. A $10 million investment would grant Apple wider access to the nation’s 278 million consumers, many of whom are younger and tech-savvy. However, while additional investment could support Indonesia’s goals, some observers note that the government’s stringent requirements may deter other foreign companies from expanding in the region, potentially impacting Prabowo’s broader aim to attract foreign investment to stimulate economic growth.
-- ASIA NEWS CHANNELS