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Indonesia says Apple’s $100m investment offer insufficient

Indonesia’s government has expressed concerns over Apple’s US$100 million investment proposal, as the country has blocked the sale of the iPhone 16 locally, citing the tech giant’s non-compliance with content requirements for smartphones.

Industry minister Agus Gumiwang Kartasasmita said Monday that Apple’s proposal lacks the “fairness” the government seeks, viewing this amount as insufficient compared to the tech giant’s other international investments.

Apple has invested more than 244 trillion rupiah (US$15.3 billion) in Vietnam, where it annually sells about 1.5 million units. In Indonesia, where annual sales reach approximately 2.5 million units, Apple’s investments stand at around 1.5 trillion rupiah (US$94.5 million), with a focus on developer academies.

However, Kartasasmita said this amount remains below expectations. The minister also mentioned Apple’s pending delivery of US$10 million from a pledged 1.7 trillion rupiah (US$107.1 million) in 2023.

The government is pressing Apple to form a negotiation team to discuss investment plans. Kartasasmita insisted on prioritizing the establishment of a manufacturing facility in Indonesia to boost local industries.

Recent Apple developments

Timeline
24-Nov-2024 🤖 Apple said to enhance Siri using ChatGPT-like LLM
  • Apple upgrades Siri with advanced LLM capabilities
  • Project aims to improve AI conversational abilities
21-Nov-2024 ⚖️ Apple disputes US monopoly claims in antitrust case
  • Apple seeks dismissal of DOJ antitrust lawsuit
  • Claims DOJ fails to prove Apple’s monopoly power
21-Nov-2024 📱 Apple returns 95% of App Store revenue to China developers
  • 95% of App Store revenue went to local developers
  • Tim Cook highlights App Store’s local business support
21-Nov-2024 🇮🇩 Apple to invest $100m in ID to tackle iPhone ban: gov’t
  • Apple to invest $100M in Indonesia plant.
  • Plant aims to meet local component requirements.
20-Nov-2024 📉 Apple’s sales dip as Huawei gains ground during Singles’ Day

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