Apple Inc. is reportedly set to increase its investment in Indonesia to US$100 million (approx. IDR 1.57 trillion), ten times higher than the original plan of US$10 million. This investment is aimed at persuading the Indonesian government to lift the ban on the sale of the iPhone 16.
According to Bloomberg, Apple plans to invest nearly US$100 million over two years, focusing on building a factory for accessories and components in Bandung, southeast of Jakarta.
Apple awaits Indonesia's decision
Apple has submitted a revised investment proposal to the Ministry of Industry in a bid to obtain approval to sell the iPhone 16 in Indonesia. However, the Ministry of Industry has suggested that the investment should focus more on developing research and innovation for mobile devices in the country.
According to the Bloomberg report, the Industry Ministry has yet to make a decision on the proposal.
Apple executives were previously scheduled to meet directly with Industry Minister Agus Gumiwang Kartasasmita. However, upon arrival in Jakarta, they were informed that the minister was unavailable and the meeting was held with the ministry's director general instead.
Neither Apple nor the Ministry of Industry has issued an official statement on the matter.
Apple faces sales ban in Indonesia
Apple is unable to sell the iPhone 16 in Indonesia because it has not met the required domestic component level (TKDN) standards, which are mandatory for marketing products in the country. Apple's TKDN certification has expired and the promised investment of IDR 1.7 trillion has not been fully realised as the company has only invested IDR 1.5 trillion so far.
To obtain a new TKDN certification, Apple must partner with local manufacturers, develop apps in Indonesia or create an innovation programme. The ban on the sale of the iPhone 16 will remain in place until Apple meets its investment commitments and renews its certification.
Apple's decision to increase its investment in Indonesia is aimed at gaining access to the country's market of 278 million consumers, more than half of whom are under the age of 44 and tech-savvy. However, it is not yet clear which companies will receive the investment. Apple typically works with partners such as Foxconn to assemble and supply components for the iPhone and iPad.
