No iPhone 16 without local production: Indonesia increases pressure on Apple
Because none of the components come from Indonesian factories, the iPhone 16 cannot be sold there. A billion-euro pledge is set to change that.
(Image: Mac & i)
To be allowed to launch the iPhone 16 and iPhone 16 Pro on the large Indonesian market, Apple apparently has to dig much deeper into its pockets. The necessary approval is currently lacking. The investment of 100 million US dollars initially announced by Apple was considered too low, but now, according to an Indonesian minister, the company wants to invest one billion US dollars in a local plant. This was reported by the news agency Reuters. The deal does not yet appear to be a done deal, but the government is hoping for a written commitment next week, according to the minister.
More components from local production
Due to a lack of investment, Indonesia is blocking the approval and therefore the sale of the iPhone 16 and 16 Pro, a measure that also caused an international stir at the end of October. The latest iPhone generation has been available in many other regions since September. Imported devices appear to be able to be used locally. However, the island state generally requires the IMEI number of cell phones to be registered to be able to use SIM cards from local mobile phone providers. Alternatively, it should also be possible to use an eSIM.
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To strengthen its own economy, Indonesia requires products to contain a proportion of locally produced components. According to Reuters, 40 percent of the components in smartphones such as the iPhone must now come from local production.
However, Apple is a long way from achieving this: the island nation is practically not integrated into Apple's supply chain at all, and there is only one Indonesian company on the company's long public list of suppliers. However, Apple has opened several "Developer Academies" in Indonesia and received approvals for older iPhone generations.
Indonesia not integrated into Apple's supply chain
This is a dilemma for the iPhone company: although Apple is gradually shifting parts of its production away from China to other Asian countries, it is primarily neighboring regions, such as Vietnam, that are benefiting. Although Apple's suppliers are spread across the globe, Chinese companies are still disproportionately represented. The important iPhone final production still takes place mainly in China.
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