Previously, we mentioned how Apple could invest $100 million in Indonesia. According to Reuters, Indonesia might decline the offer. So, what should you know about it?
For your information, sales for the Apple iPhone 16 series were blocked after Apple failed to fulfil its previously promised investment of 1.71 trillion Rupiah (~RM 473 million). This morning, Reuters reported the Indonesian Ministry of Industry said Apple's $100 million investment reserve was insufficient.
In addition, Minister of Industry Agus Gumiwang Kartasasmita said in a media conference that after the assessment was carried out, Apple's reserves were found not to meet the principles of justice. Investment reserves into accessory factories are insufficient compared to Apple's investments in Thailand and Vietnam.
Indonesia requires devices entering the local market to have at least 40% components or involvement with local companies. Before selling iPhones, Apple opened an application development academy and invested in Indonesian accessory manufacturers.
As the country with the largest population in Southeast Asia, banning the iPhone in Indonesia will have an impact on Apple's sales. Apart from the iPhone 16, Indonesia also banned the sale of the Google Pixel 9 for the same reason. We have yet to confirm other details on the news. Hopefully, everything will be resolved soon.
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