After a ban on the import of iPhone 16 to Indonesia due to Apple’s activities not meeting localization requirements in the local market, the company proposed investing $100 million in the country’s economy over the next two years and establishing the production of components for its devices on its territory. During the negotiations, the Indonesian authorities gained a taste and are now demanding more.
Image source: Apple Maps
At least this is what CNBC reports with reference to Indonesian media. In general, smartphones and tablets sold in Indonesia must have 40% localized content, even when it comes to software. Apple products in their current form do not meet these requirements. Indonesian officials reportedly met with Apple representatives last Thursday, and during the negotiations they insisted on more serious localization of the brand’s products than the company proposed.
Apple plans to spend $100 million over two years to finance research activities in Indonesia and train application developers. In addition, it plans to launch production of components for its devices in the country, in this case, earphone nets for AirPods Max, which will begin production here in July 2025. Local officials, apparently, were not satisfied with such intentions, and they demand not only to increase the amount of investment, but also to take a more serious approach to the localization of production. At the very least, the Indonesian industry is quite capable of producing not only chargers, but also ready-made Apple accessories, and not just their components. Apple’s investments in this area could contribute to this, but for this the amount needs to be increased.