Apple's USD 1 Bn Investment Helps Lift Ban on iPhones in Indonesia

Consumer Discretionary Author: EqualOcean News Editor: Yiran Xing, Wanqi Xu Updated 6 hours ago (GMT+8)
Apple

After five months of arduous negotiations and bargaining, the Indonesian government and Apple Inc. have reached an agreement on terms to lift the ban on iPhone 16 in the country.

It is said that Apple has committed to increasing its investment in Indonesia to USD 1 billion (CNY 7 billion). The Ministry of Industry, which is responsible for maintaining the ban, is expected to sign a memorandum of agreement with Apple as soon as this week, followed by a press conference. The Ministry plans to issue a license to Apple allowing the sale of iPhone 16 as soon as possible.

In addition to the USD 1 billion investment commitment, Apple will also focus on training Indonesian local employees in product development. This includes imparting knowledge and skills in various aspects, ranging from programming skills and application development logic in software development to the basics of hardware design and product manufacturing processes.

Since last October, Indonesia has imposed a sales ban on iPhone 16, citing Apple's failure to fulfill its investment commitment related to the "domestic component level" certification requirements. This has significantly hindered Apple's expansion plans in the Indonesian market.

The Indonesian government adheres to promoting local brands and has always been cautious about imported products. This incident reflects the Indonesian government's strong demand for the development of local manufacturing and Apple's strategic considerations in its global market layout.