From our previous news report, the Indonesian government has rejected Apple's $100 million offer. This is why the Apple iPhone 16 Series was blocked in the country due to its failure to meet local investment requirements. So how much are they expecting then?
According to Reuters, Investment Minister Rosan Roeslani told lawmakers that the government is actually expecting to receive a $1 billion investment commitment from Apple if it wants to continue to do business in the country. To refresh your memory, Apple did not adhere to the 40% locally-made parts for the iPhone 16 Series.
Rosan argued that whoever benefits from the sales must invest and create jobs here in Indonesia, as he foresees suppliers will follow once how important the global value chain moves here. On top of that, a deputy minister also said Indonesia plans to increase the locally-made parts requirement.
That's not to say Apple has not bothered doing something for Indonesia. While it has no manufacturing facilities there, the company has set up application developer academies since 2018. That strategy was considered by the Indonesian government an opportunity to meet local content requirements for selling older iPhone models.
Apple has not made any comments yet. But Indonesia expects an answer from the big tech in a week. It is unknown what will happen if Apple did not reply but we can be sure that the iPhone 16 Series will not continue there.
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