To resolve the problem of banning the iPhone 16, Apple has promised to invest $100 million (around Rp 1.57 trillion) in Indonesia, according to Bloomberg and GSM Arena. This number is a significant jump from the $10 million (Rp 156.8 billion) commitment that the company originally made.
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Apple Commits $100M Investment in Indonesia to Address iPhone 16 Ban and Meet Local Requirements
The first investment of $10 million will be used to build an accessory manufacturing plant in Bandung, West Java. The $100 million investment has been extended over two years with the first stage being centred around the Bandung plant. It was not specified how the remaining $90 million would be used but GSM Arena suggests that Apple partner Foxconn could be establishing an assembly line in the nation.
Even so, this new commitment is still lower than the Rp 1.7 trillion target set by Industry Minister Agus Gumiwang Kartasasmita who requested Apple to meet Indonesia’s domestic component level (TKDN) requirement of 35% for selling the iPhone 16 in the country. Apple is expanding its Apple Developer Academy program, which helps young people gain coding and entrepreneurship skills in order to comply with TKDN.
The first academy began in BSD, Sidoarjo, and Nongsa, while there are plans to open another one in Bali as well but it has not materialized just yet. The iPhone 16 is still not available in Indonesia since its launch globally in September, due to the TKDN problem. As a result, the Trade Ministry has prohibited online platforms from listing the device, and the Industry Ministry plans to block the IMEI of iPhone 16 units in the country.
Despite this, approximately 9,000 iPhone 16 units were brought into Indonesia between August and October 2024 through individual travelers who paid the appropriate taxes. Similarly, 22,000 Google Pixel devices were imported for personal use earlier this year, but resale is prohibited. Neither Apple nor the Ministry of Industry has officially commented on the ongoing negotiations or the status of the investment.
FAQs
Why is Apple investing $100M in Indonesia?
To address the ban on the iPhone 16 and meet local manufacturing requirements.
What is the iPhone 16 ban about in Indonesia?
It was banned due to failure to meet Indonesia’s 35% domestic component requirement.
