Apple Offers IDR 1.5 Trillion Investment To End The IPhone 16 Sales Ban In Indonesia
Jakarta - Apple is taking a big step towards ending the ban on sales of the iPhone 16 in Indonesia by offering a ten-fold increase in manufacturing investment, from the initial plan of 10 million US dollars (Rp150 billion) to 100 million US dollars (Rp 1.5 trillion).
The ban came after the Indonesian government assessed that Apple failed to fulfill its previously promised investment commitments. Initially, Apple agreed to invest $109 million in developer academies in Indonesia and USD 10 million in manufacturing activities for two years. However, the realization of funds for academies only reached USD 95 million, which prompted the government to take firm steps by banning sales of the iPhone 16.
In addition to the iPhone 16, the Indonesian government has also banned the sale of Google Pixel phones due to similar violations.
Apple's Strategy To Break Into The Indonesian Market
According to a Bloomberg report, Apple is now offering an investment of nearly 100 million US dollars in the manufacturing sector of Indonesia in the next two years. This proposal is designed so that companies from Cupertino, USA, can again access the Indonesian market, which amounts to 278 million consumers, with more than half of them being the young generation who are technology literate.
The investment plan is expected to involve the establishment of a factory in Bandung, West Java, to produce Apple accessories and device components. However, there is a possibility that this investment also includes requests to Foxconn or other supply chain partners to set up iPhone and iPad assembly facilities in Indonesia.
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Indonesia has used a similar approach to India, which has successfully attracted Apple to build assembly facilities as a condition for entering the market. Now, India is Apple's second largest manufacturing hub after China.
This is not the first time Apple has been required to meet investment requirements in Indonesia. In 2017, companies were also required to make similar investments to obtain permits to sell iPhone products in this country.
Apple's move this time shows the company's seriousness in maintaining its existence in the highly potential Indonesian technology market.