Difficult negotiations: iPhone 16 ban still not lifted in Indonesia
Apple's new smartphone is still not available in one of the world's most populous countries. An agreement has now failed for the time being.
Apple logo in front of an Indonesian flag: trouble over the iPhone 16 launch for weeks.
(Image: Erstellt mit Midjourney durch Mac & i)
282 million. That's how many people live on the numerous small and large islands that belong to the Republic of Indonesia. This makes the country the fourth-largest nation in the world and is a significant market for electronics manufacturers, not least because of its very young, tech-savvy population. However, Apple has not been able to compete in this market since last year. The iPhone 16 with all model variants has been subject to an official ban since October. The reason: Apple is said to have failed to implement promised investments in Indonesia. Initially, only involving a small amount in the millions, the conflict has now escalated to a good one billion US dollars, which Apple is supposed to invest in Indonesian research and production centers. But even that doesn't seem to be enough. According to media reports, the latest negotiations have failed again and the iPhone 16 remains banned.
Indonesia continues to play poker
The Apple manager responsible for the talks with the Indonesian economy minister left on Wednesday, reports the financial news agency Bloomberg. The “late U-turn by a minister” has ruined an agreement. Nick Amman, Apple's Vice President of Global Affairs, had to leave without a signed contract. This is all the more astonishing given that Indonesian President Prabowo Subianto is said to have instructed his ministers and the bureaucracy to accept the Apple deal in December.
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Amman's negotiating opponent – According to observers, one cannot speak of a negotiating partner – is Agus Gumiwang Kartasasmita, the Minister of Industry. He decided last week to maintain the iPhone 16 ban despite the Apple offer. Allegedly, this is also about an internal power struggle within the still fresh Indonesian government. Kartasasmita continues to insist on “local regulations”, according to which parts of the iPhone – or its components – would have to be produced in Indonesia before the sales ban ends.
“No time frame” for billion-euro deal
Apple had recently significantly increased its offer. For the aforementioned one billion dollars, the company wanted to build the UWB and Bluetooth tracker AirTags on the island of Batam for the first time, employ 1,000 people and also invest a lot of money in local educational institutions. Other parts of the money from the billion-dollar pot are to flow into another Indonesian plant, this time in Bandung, three hours from Jakarta. “Other types of accessories” are to be built there.
However, there has been no mention of the iPhone so far, which apparently bothers Kartasasmita. President Prabowo had actually asked the Coordinating Minister for Economic Affairs to conclude the contract with Apple. However, the Minister of Industry then vetoed the deal. The deal is now to be negotiated further under his leadership. Although Amman is no longer in the country, other Apple team members are still in Jakarta, according to Bloomberg. The affair could drag on even longer, as the news agency Reuters wrote this week. Kartasasmita said that “no time frame” had been set for the deal, it was only about its substance. He therefore considers one billion to be “not enough”. Meanwhile, Apple continues to lose iPhone sales in Indonesia.
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