News about the iPhone 16 Series being banned by the Indonesian government has been going on for a few months. Today, Bloomberg reports that both Indonesia and Apple have finally agreed on the terms to lift the ban.
According to people familiar with the matter, the agreement is settled on a $1 billion investment in Indonesia. A memorandum of understanding is set to be signed between the Ministry for Industry and Apple this week. A press briefing will be held for that and at the same time, the ministry will issue a permit to allow the iPhone 16 Series to return on sale as soon as possible.
For the uninitiated, the ban started in October by Indonesia due to Apple's failure to comply with domestic manufacturing requirements for phones and tablets. The company first proposed a $10 million investment, then $100 million which the Ministry for Industry rejected. Even with a $1 billion investment, the ministry still didn't accept it because the terms weren't good enough.
Besides the $1 billion investment, Apple also has to commit to training locals in research and development on the products. That way, they can learn and develop their own software, goods and designs. Although Apple already has academies in Indonesia, this training will be held in other programs instead of the former.
Moreover, the $1 billion investment will also include setting up new plants in Bandung and a Batam island. On the island, it is said the plant will produce Apple AirTags, while the other in Bandung will produce other accessories. The latter plant will also equip students with tech skills.
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