iPhone 16 Sales Still Restricted in Indonesia Despite Apple’s Major Investment Proposal
Recent developments indicate that Apple is still grappling with a ban on the sale of the iPhone 16 in Indonesia, despite the company’s substantial efforts to resolve the situation. Reports suggest that Apple’s proposal, which included a $1 billion investment and the establishment of a manufacturing plant on Batam island, has not been sufficient to lift the ban imposed by the Indonesian government.
Background of the Ban
The controversy began when the Indonesian authorities accused Apple of failing to meet its previous investment commitments, prompting the government to restrict sales of the iPhone 16 in the region. In an attempt to remedy this, Apple initially proposed a $10 million investment plan, which was swiftly turned down. Subsequently, Apple elevated its offer to $100 million, yet this too failed to satisfy the government’s requirements.
Current Government Stance
In light of the ongoing negotiations, the Indonesian government has revised its demands, emphasizing the necessity for Apple to establish a factory dedicated to the production of iPhone 16 components within the country. Minister Agus Gumiwang Kartasasmita stated that the existing offer to manufacture AirTags does not qualify as fulfilling their local production criteria. He further clarified, “There is no basis for the ministry to issue a local content certification as a way for Apple to have permission to sell iPhone 16 because (the facility) has no direct relations.”The government is maintaining a strict focus on components that are directly related to the iPhone itself.
Economic Implications
This situation reflects Indonesia’s commitment to ensuring that foreign corporations like Apple contribute tangibly to the local economy. By demanding a manufacturing presence within its borders, the government seeks to bolster local job creation and technological advancement. Consequently, for the time being, Indonesian consumers eager to get their hands on the iPhone 16 will have to travel abroad, with Singapore being the nearest option for purchasing the device.
Source: Reuters
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