Indonesia rejects Apple's $100 million investment offer, iPhone ban continues
Indonesia has turned down Apple's proposed $100 million investment, calling it 'unfair.' The country's Industry Minister, Agus Gumiwang Kartasasmita, expressed his discontent with the offer on Monday. He noted that the proposed investment is much lower than what Apple has invested in other countries. The rejection comes as negotiations continue to lift a ban on iPhone 16 sales in Indonesia.
Apple's investment in Indonesia compared to other countries
Kartasasmita also drew comparisons between Apple's investments in other countries. He pointed out that the tech giant has invested over IDR 244 trillion ($15 billion) in Vietnam for manufacturing facilities, where it sells some 1.5 million units. Meanwhile, its investment in developer academies in Indonesia is just about IDR 1.5 trillion, even though it sells some 2.5 million units there. This highlights the minister's concerns over fairness in Apple's proposed investment for his country.
Apple's investment lags behind competitors in Indonesia
The minister also compared Apple's investment with that of its competitors in the Indonesian market. He revealed that Samsung and Xiaomi have invested IDR 8 trillion and IDR 55 trillion, respectively, to manufacture their devices locally. "We want Apple to return to do business here but we need a fair resolution," Kartasasmita stated, emphasizing the need for equitable investment from the tech giant.
Indonesia's investment requirements and Apple's response
Indonesia has stopped the sale of the iPhone 16, as Apple failed to meet a domestic content requirement for smartphones and tablets. Kartasasmita noted that Apple's current IDR 1.5 trillion investment in Indonesia is lower than the IDR 1.7 trillion it promised in 2023, falling short by about $10 million. In response to the sales ban, Apple had proposed an increased investment of $100 million earlier this month.
Indonesia's expectations from Apple amid investment negotiations
"We want Apple to send negotiation teams to meet us," Kartasasmita said, showing the government's willingness to continue talks. He detailed their demands, including Apple meeting its remaining $10 million investment commitment from last year and offering a bigger deal for 2024-2026. The minister stressed that their main objective is to convince Apple to set up a manufacturing plant in Indonesia.
