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Minister says Apple 'losing out' by dragging its feet on $1b investment
Indonesia is playing hardball to get Apple to fulfill its obligations, including on local content and investment, before it green-lights sales of the iPhone 16 series in Southeast Asia’s largest economy.
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An attendant arranges an Apple iPhone display at a smartphone outlet in a South Jakarta shopping mall on Nov. 30, 2024, next to a promotional poster for the iPhone 16 that reads “Coming soon”. (JP/Tama Salim)
T
he government is holding off on approving the local sales of Apple's latest iPhone model, as the United States tech giant has yet to commit to its US$1 billion manufacturing investment and meet its local content obligation, Industry Minister Agus Gumiwang Kartasasmita has said.
Indonesia wants Apple Inc. to view the country as not just a market for its devices, but also a production base and a part of its global supply chain.
Apple had received the government’s proposal but had yet to commit to moving on it, Agus said.
"There is no official commitment yet from them to build a factory. The ones losing out here are them,” the minister said on Wednesday, as quoted by Bisnis.com.
Until Apple fulfilled the government’s demands, its new devices would not receive clearance to enter the Indonesian market, he emphasized.
Read also: Govt expects Apple to up investment commitment to $1 billion
The government has blocked sales of Apple’s iPhone 16 series in the country, after it discovered the company was in breach of a local content rule that sets a minimum rate of 35 percent for its products.
