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Govt wants R&D facility, supply chain role in return for iPhone 16 sales permit
Indonesia has set new terms and conditions for Apple to legally sell its latest phone in the country, after weeks of a public standoff between the tech firm and the government over local content requirements.
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Apple iPhone 16 models are displayed at a Apple event in Cupertino, California, the United States, on Sept. 9, 2024. (AFP/Nic Coury)
T
he government has set new terms and conditions for Apple to legally sell its new iPhone 16 in the country, as it seeks to end a weeks-long public standoff with the United States-based tech firm over local content requirements.
Industry Minister Agus Gumiwang Kartasasmita has requested that Apple establish a research and development (R&D) facility, include local companies in the company’s global supply chains and continue to move ahead with Apple Academy development centers in the country.
The minister said he expected the firm to bump up its investment by at least another Rp 240 billion (US$15.19 million) to meet the Rp 1.7 trillion “initial commitment”.
“For a company that big, the figure is minuscule,” Agus told House of Representatives Commission VII, which oversees industry, the creative economy and tourism, in a work meeting in Jakarta on Tuesday.
He compared the value with Apple’s total sales in Indonesia, which amounted to $2 billion in 2023.
Read also: Apple reportedly pledges investment after ban of iPhone 16
The government currently prohibits the sale of iPhone 16 devices in the country, having found that Apple was not compliant with a rule that its products meet a 40 percent local content requirement.
