Apple Offers Token Investment To Revoke IPhone Ban In Indonesia

Apple CEO, Tim Cook, offered Apple's additional investment to Indonesia (photo: x @tim_cook)

JAKARTA - After the Indonesian government banned the sale of the iPhone 16 due to Apple's lack of domestic investment, the company has reportedly applied for an investment of 10 million US dollars (Rp158.4 billion) for local suppliers and a factory near Jakarta. The factory manufactures accessories and components for Apple devices, according to unnamed sources.

The iPhone ban in Indonesia comes into effect at the end of October 2024, as the government seeks to encourage more investment in the domestic manufacturing sector. Apple has not fulfilled the promised investment commitment.

According to Bloomberg, Apple has submitted this proposal to the Ministry of Industry, which is currently considering it. Decisions related to this are expected to be announced soon, although there has been no official comment from the Ministry of Industry or Apple.

However, the proposed investment amount of 10 million US dollars is still not enough to fulfill Apple's obligations. Previously, this company had committed to investing 109.6 million US dollars (Rp1.7 trillion) in Indonesia, but so far it has only realized 94.53 million US dollars (Rp1.49 trillion).

Like other foreign companies in Indonesia, Apple is required to have a Domestic Component Level (TKDN) certificate which requires 40% of components or services sourced from within the country. Apple's previous TKDN certificate has expired.

This $10 million investment is a new step for Apple, which previously focused more on what the government calls innovation development through the establishment of the Apple Academy. In April 2024, Apple opened its fourth Developer Academy in Indonesia.

"We are excited about the growing community of developers in Indonesia," said Apple CEO Tim Cook, at the time, "and we look forward to investing in more successful developers with our fourth academy in the country."