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Apple snubbed by Indonesia over lightweight investment

by on26 November 2024


If you want to make a bomb from us you have to invest more

Indonesia has given tech giant Apple the cold shoulder, flat-out rejecting a measly $100 million investment proposal aimed at setting up an accessory and component plant.

The slapdown means the fruity cargo cult still can't sell its latest iPhone 16 in Indonesia, thanks to stringent local laws requiring smartphones to have at least 40 per cent locally-made parts.

Indonesia's industry ministry said the tech titan's offer was not up to snuff, a move that would make even the staunchest Apple fans cringe.

Industry Minister Agus Gumiwang Kartasasmita said, "We have done an assessment, and this (proposal) does not meet principles of fairness."

He dared to point out that Jobs’ Mob had far heftier investments in neighbouring Vietnam and Thailand.

Indonesia had already banned sales of Apple's iPhone 16 in November, citing the same local component rules that also slashed Google Pixel's market share in the country.

In a last-ditch effort to reverse the sales ban, Apple proposed the investment, but it's clear Jakarta wasn't impressed.

Jobs’ Mob has no manufacturing facilities in Indonesia. Since 2018, the tech behemoth has attempted to curry favour by setting up application-developer academies, a move Jakarta considers enough to meet local content requirements for older iPhone models.

But it's not enough now. Agus pointed out that Apple had an outstanding investment commitment of $10 million, which it should have carried out before 2023. He’s also demanding Apple commit to new investments up to 2026.

Apple's fate isn't sealed just yet—Agus revealed that the ministry would invite the company to further negotiations in Indonesia. But unless Cupertino ups its game, the iPhone 16 won't see the light of day in Indonesian stores anytime soon.

Last modified on 26 November 2024
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