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Indonesia balks at Apple’s $100m investment plan, seeks better deal
The government wants Apple to look at Indonesia not only as a market for its devices but also as a production base and a part of its global supply chain.
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Industry Minister Agus Gumiwang Kartasasmita (center), Industry Ministry’s metals, machinery, transportation equipment and electronics industry (ILMATE) director general Setia Diarta (left) and the Industry Ministry’s inspector general Mohammad Rum address the media at the Industry Ministry office in Jakarta on Nov. 25, 2024. (JP/Ruth Dea Juwita)
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US$100 million investment bid from Apple Inc. has failed to convince the government to revoke a ban on sales of the new iPhone 16 in Indonesia.
Southeast Asia’s largest economy expects the United States tech giant to not only view Indonesia as a market for its devices but also consider it as a production base and a part of its global supply chain.
Industry Minister Agus Gumiwang Kartasasmita told reporters on Monday that the offer received on Nov. 18 paled in comparison with Apple’s investments in smaller markets of the region, such as Vietnam and Thailand.
“We have done an assessment, and this [proposal] does not meet principles of fairness,” Agus said.
Read also: Govt weighs ‘fairness’ of Apple’s $100m investment plan to lift iPhone sales ban
For instance, Apple has invested significantly more in Vietnam, pouring over Rp 244 trillion (US$15.4 billion) into manufacturing facilities there, despite lower sales at around 1.5 million units, he said.
Indonesia led Southeast Asia in iPhone sales with 2.5 million units sold, generating Rp 30 trillion in revenue, according to the ministry’s data.
