Apple has faced challenges in Indonesia, but recent negotiations regarding the lifting of the iPhone 16 ban are progressing, reportedly involving a substantial investment of $1 billion as anticipated by the Indonesian government.
Investment of $1 billion succeeds a declined $100 million offer
Following the ban on iPhone 16 sales in October due to perceived insufficient investment in the local economy by Apple, negotiations between Apple and Indonesian officials have intensified.
Initially, Apple planned a $109 million investment for a developer academy, but the government indicated Apple had only invested $95 million.
In reaction to the sales ban, Apple proposed increasing its manufacturing investment from $10 million to $100 million.
This week, the investment minister of Indonesia suggested that Apple would increase its investment significantly to $1 billion in manufacturing.
He expressed confidence that Apple would comply with this request, and it appears that they are moving forward accordingly.
Reuters reports:
According to Indonesia’s investment minister on Thursday, Apple intends to invest $1 billion in a manufacturing facility in Indonesia aimed at producing components for smartphones and other devices.
[…]
Investment Minister Rosan Roeslani informed reporters that they are still finalizing the details of the investment, but confirmed it aligns with the anticipated $1 billion investment he had mentioned earlier this week.
“We will continue discussions with them… we hope to make an official announcement next week after we receive written confirmation from them,” he stated.
While Apple has not yet issued a statement, it seems likely that an announcement will be made soon.
Insights from DMN
If the investment minister’s comments reflect accurate discussions with Apple, it appears that a verbal agreement regarding the $1 billion investment is in place.
Reuters highlights that “Apple currently operates no manufacturing sites in Indonesia, which has a population of around 280 million.” Thus, a $1 billion investment could significantly impact the local economy as well as enhance Apple’s global production capabilities.
What are your thoughts on today’s announcement? Do you foresee other countries adopting similar negotiation tactics? Share your opinions in the comments.
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