Indonesian Investment Minister Rosan Roeslani announced that they expect Apple to invest $1 billion in the country. Indonesia has banned the sale of iPhone 16 models; The reason for this is that smartphones sold in the country must contain at least 40 percent locally produced parts. Since Apple does not have any production facilities in Indonesia, it is not currently possible to meet this condition.
Roeslani stated that Apple should not only make this investment, but also make Indonesia a part of its supply chain with larger investments in the future. He also emphasized the employment creation potential of Apple establishing a production facility in the country.
In the past, Apple has proposed a $100 million investment to establish an accessories and components factory in Indonesia. However, the Indonesian government rejected the project on the grounds that this proposal did not meet the “principles of justice”.
Although Apple has not yet been able to meet the local production requirement, there are application developer academies in Indonesia. These academies allow Apple to keep older iPhone models on sale in the country. There is currently no ban on the sale of old models.
According to Roeslani’s statements, the re-sale of the iPhone 16 depends on Apple making a serious investment to meet local content requirements. The Indonesian government thinks that this will not only facilitate technology transfer but also greatly contribute to the economy and workforce. An official statement has not yet been made from Apple on the subject.
Indonesia has a huge market potential for smartphone manufacturers
Indonesia is the largest economy in Southeast Asia, with a GDP of over $1 trillion and a population of over 280 million. There are nearly 350 million active mobile phones in the country, which means a huge market potential for smartphone manufacturers.
Analysts think Indonesia implements such restrictive policies to attract more investment from foreign companies. This strategy aims to strengthen the local economy and create more jobs in the technology sector.
Apple needs to re-evaluate its local production and investment strategies to maintain and expand its presence in the Indonesian market. This is of critical importance for the company’s expansion plans in Asia.