Is Apple's US$10mn Investment Offer a bid to Allow iPhone 16 Sales in Indonesia?

1 week ago 8

November 7, 2024 | 06:05 pm

TEMPO.CO, JakartaApple Inc. has reportedly made an investment offer close to US$10 million or around Rp158 billion to produce more products in Indonesia. Citing Antara, this could be a move by Apple to lift the ban on iPhone 16 sales in the country.

The South China Morning Post published an article on November 5, reporting that the plan is to set up a factory in Bandung, West Java, which will be operated together with its supplier partners. The factory would produce accessories and components for Apple devices.

The investment proposal has reportedly been submitted to the Indonesian Ministry of Industry. The ministry has denied Apple a sales permit for the iPhone 16 because the product does not meet the 40 percent local content requirement for mobile phones and tablets.

According to an anonymous source, the Ministry of Industry is currently reviewing Apple's proposal, the status of which is not final and may change. Neither Apple nor the MOF have officially commented on the issue.

The Ministry of Industry will deactivate the International Mobile Equipment Identity (IMEI) serial number for 16 iPhone products that have been proven to be traded domestically. This is because the latest iPhone has not been approved to enter the domestic market, as there are investment commitments that have not been completed, so they have not obtained a TKDN certificate as an absolute requirement for selling in Indonesia.

In order to obtain TKDN certification, Apple is required to commit to investment through three programs, namely the construction of a manufacturing facility, innovation, or an application development program.

Apple had previously committed to investing in Indonesia through an innovation scheme by establishing the fourth Apple Academy worth Rp1.71 trillion. However, the ministry noted that Apple had only realized an investment of Rp1.48 trillion, which was still about Rp240 billion short.

Editor's Choice: Apple Reportedly Applies for Investment of Rp158 Billion in Indonesia, Ready to Build Factory in Bandung

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