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Govt weighs ‘fairness’ of Apple’s $100m investment plan to lift iPhone sales ban

The Industry Ministry is also considering revising “outdated” local content requirements to better align with current industry developments.

Ruth Dea Juwita (The Jakarta Post)
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Fri, November 22, 2024

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Govt weighs ‘fairness’ of Apple’s $100m investment plan to lift iPhone sales ban Customers walk past an Apple logo on Aug. 1, 2018, inside of an Apple store at Grand Central Station in New York, the United States. (Reuters/Lucas Jackson)

T

he Industry Ministry is assessing an upgraded investment proposal from Apple Inc. seen as the company’s latest effort to win the green light to sell its latest iPhone models in Indonesia.

According to the ministry, Apple submitted a plan on Monday to pour US$100 million into Southeast Asia’s largest economy to build a development center and a development academy as well as to begin producing mesh components for AirPods Max headphones beginning in July 2025.

Apple declined to comment when contacted by The Jakarta Post on Thursday.

The investment would be in line with the government’s push to integrate local industries into global value chains and marks a massive increase over a $10 million investment proposal put forward earlier this month to build an accessories manufacturing plant in Bandung, West Java.

“We are currently assessing if the $100 million investment proposal is fair for Indonesia, not just compared to Apple’s investments in other countries but also for existing domestic smartphone manufacturers,” Industry Ministry spokesperson Febri Hendri Antoni Arif told reporters on Thursday.

Read also: Govt wants R&D facility, supply chain role in return for iPhone 16 sales permit

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The ministry would negotiate carefully, Febri emphasized, as it did not want to give the impression that it was “rolling out the red carpet” just to secure Apple’s investment.

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