Apple’s proposed US $100 million investment plan to build a factory for parts and components, Indonesia’s Ministry of Industry said on the same day, Reuters reported, not Enough to get the country to approve the iPhone 16. The Indonesian government banned the sale of Apple’s iPhone 16 in the country in November after it failed to meet a requirement to contain at least 40 per cent locally made components. Indonesia has also banned Alphabet’s Google Pixel phones because of insufficient use of local components. Apple did not respond to requests for comment.
The Indonesian government revealed last week that Apple had proposed an investment that would lift the sales ban. Indonesian Antara Minister Argos said at a press conference that Apple’s proposal failed to meet the principle of fairness. The Register, a British technology news website, reported on The 26th that The Indonesian government considered Apple’s proposal to be uncompetitive with its activities in other countries and with other mobile phone brands operating in Indonesia. The government also believes that the proposal does not add enough value or national income, nor does it meet the expectations of job creation.
Fortune magazine quoted Argos as saying Apple’s offer was less than the amount the US technology company had invested in other countries. Apple has invested more than 244 trillion rupiah ($15 billion) in manufacturing plants in Vietnam, where it sells only about 1.5 million units. In Indonesia, where Apple has invested only about Rp1,500 bn in its developer Academy, the brand has sold about 2.5 M units.
Reuters said Apple does not have a manufacturing plant in Indonesia, but since 2018 the company has set up a“Developer Academy” in the country, the Indonesian government sees it as a way for Apple to meet local content requirements in order to sell older iPhone models.
“We want Apple to come back here to do business, but we need a fair solution,” Argos said, adding that the Ministry of Industry would invite Apple to visit the country for further talks.
The government’s demands include apple paying the remaining US $10 million of last year’s investment commitments and proposing a more realistic investment plan for the 20262024 period, according to fortune. Argos said their primary goal remained to get the company to open a factory in Indonesia.
Brazil’s antitrust regulator Cade said apple needs to lift restrictions on in-app payment methods, Reuters reported Tuesday. Apple will have 20 days to comply and faces a daily fine of R $250,000($43,000) if it fails to comply. Latin n e-commerce giant Mercadolibre sued in Brazil and Mexico in 2022, accusing Apple of placing restrictions on distribution and in-app purchases of digital products, including the prohibition of the distribution of third-party digital products and services.