iPhone ban: Apple offers Indonesia investment of 100 million dollars
There is movement surrounding an Apple investment in the fourth-largest country in the world: The company is increasing its pledge to release its iPhone 16.
Apple's iPhone: The 15 Plus is still allowed in Indonesia, the 16 has just been banned.
(Image: Sebastian Trepesch)
An agreement seems to have been reached in the conflict with the Indonesian government over Apple's lack of investment: The company plans to invest up to 100 million US dollars in local offices and research centers in order to be allowed to sell its iPhone 16 in the world's fourth largest country again. This would be a tenfold increase in the originally planned investment sum, reports the financial news agency Bloomberg.
Not yet in the bag
Apple announced in the spring that it wanted to invest a lot of money in new plants and locations in Vietnam, Singapore and Indonesia. The aim is to be less dependent on China, but also to open up large new markets in emerging regions of the world. Despite a visit by Apple CEO Tim Cook to Jakarta, the promised 10 million dollars did not flow into new locations for the production of accessories and components in Indonesia. It is still unclear why this did not happen.
In any case, the country's Ministry of Industry reacted promptly and "banned" the iPhone 16 by denying the devices the necessary approval. This means that Apple cannot sell its latest and most expensive iPhones in the country. To smooth things over, Apple has now submitted new plans and increased the number to the aforementioned 100 million. Informed circles told Bloomberg. However, the Ministry of Industry now wants Apple to invest less money in factories (which would then be built by manufacturing partners) and more money in research and development in Indonesia. Accordingly, a final decision to approve the iPhone 16 has not yet been made.
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282 million inhabitants
The new iPhones were initially not given an IMEI (International Mobile Equipment Identity) for Indonesia. "We, the Ministry of Industry, cannot issue these permits for the iPhone 16 because Apple has not yet fulfilled its obligations," said Minister Agus Gumiwang Kartasasmita. It is also forbidden to operate iPhone 16 models in the country. The incident shows how aggressively industrial policy is now being pursued in the emerging economies of Asia.
Indonesia is the largest economy in Southeast Asia, the largest Islamic country on the planet and, as mentioned, the fourth-largest nation in the world. India is also increasingly flexing its muscles towards Western companies and combining market access with investment requests. Indonesia currently has around 282 million inhabitants, half of whom are under 44 years old – and therefore often genuinely interested in technology. Apple has not yet commented on the affair.
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