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Govt demands Apple R&D to end iPhone sales ban, but takes $1b investment
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Industry Minister Agus Gumiwang Kartasasmita (second left) addresses media at the Industry Ministry office in Jakarta on Jan. 8 following a meeting with Apple Inc. executives. He was joined by the ministry’s director general for metals, machinery, transportation equipment and electronics Setia Diarta (left), Golkar Party lawmaker ilham Permana from House of Representatives Commission VII overseeing industry, MSMEs, creative economy, tourism and publication facilities, as well as the ministry’s special staff member Wandi Wanandi. (JP/Ruth Dea Juwita)
T
he government has welcomed Apple Inc.’s US$1 billion commitment to build a manufacturing facility in Batam Island, but the ban on local sales of the iPhone 16 remains in place as it still fails to meet the country’s local content rules.
Industry Minister Agus Gumiwang Kartasasmita said on Wednesday that the commitment would result in a factory to produce AirTag tracking devices, but he insisted the accessory plant did not satisfy conditions to lift the sales ban, arguing that it is not a component of the gadget in question.
“As of this afternoon, there is no basis to issue a local content certification [to permit Apple to sell the] iPhone 16 because the investment is unrelated to smartphone components,” Agus told reporters in his office.
Apple will partner with Chinese electronic components manufacturer Luxshare Precision Industry Co. Ltd., also known as Luxshare-ICT, to establish the Batam facility, Agus said.
However, it remained unclear if the investment commitment had been signed.
Last year, the government prohibited the sale of iPhone 16 devices in the country, having found that Apple was not in compliance with a rule requiring its products to meet a 35 percent local content requirement for imported smartphones, tablets and laptops.
The threshold is expected to be raised to 40 percent in the near future.
