Apple Offers $100 Million Investment to End Indonesia's iPhone 16 Ban

[MacRumors]

Apple has significantly raised its proposed investment in Indonesia to $100 million, a tenfold increase from its initial $10 million offer reported earlier this month. The new proposal aims to convince Indonesian authorities to lift their ban on iPhone 16 sales.

According to Bloomberg, the increased investment would be spread over two years. However, Indonesia's Ministry of Industry is reportedly now pushing Apple to direct more of the investment toward smartphone research and development within the country.

Indonesia blocked iPhone 16 sales in October after determining that Apple had not met the country's 40% domestic content requirement for smartphones. The government also claims Apple has invested only 1.5 trillion rupiah ($95 million) through developer academies, falling short of a promised 1.7 trillion rupiah commitment.

The ministry has yet to make a final decision on Apple's enhanced proposal. Recent attempts by Apple executives to meet with industry minister Agus Gumiwang Kartasasmita in Jakarta are said to have been unsuccessful, with the executives meeting a director-general instead.

Indonesia represents a significant market for Apple, with the country's population of 280 million operating some 354 million active mobile phones.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple Offers $100 Million Investment to End Indonesia's iPhone 16 Ban

 

[F23]

Timmy flexing that Apple cash stash woo!

 

[SAIRUS]

So it’s a bribe…

 

[winxmac]

What is 100 million USD compared to long term cash grab...

 

[I7guy]

Really sounds like a shakedown.

 

[ScottishDuck]

Good for Indonesia. Tax dodging corporations should be made to pay up if they want to operate.

 

[antiprotest]

This is extortion, no doubt. But they can't even do it right. It's kind of weak getting this amount from Apple. They should send people to learn from the EU. Or perhaps this is just a first attempt and there will be many more to come once they learn how to make companies pay. Kind of like ransomware.

 

[scrapesleon]

Apple thinks throwing money will fix everything watch how they get extorted now

 

[mikebenton]

7 years ago it was the same with iPhone 6/7, but the threshold was 30% and Apple invested $44M. The Indonesian government is trying to make a deal that's best for its citizens. I guess I can't blame them. It's an investment that has potential to earn a return - it's not just a donation. Also, their government isn't making requirements around back-door access to user's data. It's the 4th most populous region on the planet...you have to pay to play. If it was a tariff, that would just be money going to the government. That's not what this is.

 

[foobarbaz]

Maybe once a few countries are on the chopping block the bully EU will start to calm down.

You really think all those countries want iPhones more than Apple wants cash? You think people will riot and overthrow the government over losing iPhones before investors riot and overthrow Tim Cook over losing billions in revenue?

Those countries have everything to win and pretty much nothing to lose. And it's not like the US itself is acting any differently (see e.g. banning Huawei, increasing tariffs), when it has the leverage.

 

[Havalo]

So it’s a bribe…

Nope, it’s called lobbying.

 

[clg82]

What type of "investment" incentives do they offer the US? Or does the US even make that a requirement?

 

[lkrupp]

removed

 

[Maxis]

7 years ago it was the same with iPhone 6/7, but the threshold was 30% and Apple invested $44M. The Indonesian government is trying to make a deal that's best for its citizens. I guess I can't blame them. It's an investment that has potential to earn a return - it's not just a donation. Also, their government isn't making requirements around back-door access to user's data. It's the 4th most populous region on the planet...you have to pay to play. If it was a tariff, that would just be money going to the government. That's not what this is.

Actually, this is a clever demand from countries to increase education and knowledge levels globally, rather than just letting companies collect money from the local market.

 

[lkrupp]

removed

 

[BarrettF77]

So Apple will throw 100 million at Indonesia but can’t pay royalties for blood oxygen on Apple Watch?! Bravo! Extremely poor form Apple

 

[Zest28]

Tim Cook, you know what to do to lift the iPhone 16 ban in my household.

 

[surferfb]

Good for Indonesia. Tax dodging corporations should be made to pay up if they want to operate.

Imagine if every country worked liked this. Prices on everything would skyrocket. This is nothing more than Indonesia shaking down Apple because they can.

And Apple doesn’t dodge taxes. Pay the legally allowed minimum, yes. Work and lobby to make its tax bill as low as possible, also yes. Dodge, no.

 

[zoozx]

It's sad what society has become.

 

[Scott6666]

Apple should spend the $10mm on advertising in Indonesia promoting a phone the people can’t buy. Stir up some unrest.

 

[Stiksi]

Imagine if every country worked liked this. Prices on everything would skyrocket. This is nothing more than Indonesia shaking down Apple because they can.

And Apple doesn’t dodge taxes. Pay the legally allowed minimum, yes. Work and lobby to make its tax bill as low as possible, also yes. Dodge, no.

I think it's safe to call it tax dodging / evasion when the on-off largest company in the world has a smaller tax percentage than your average pensioner. Sure, it's not illegal according to the laws they lobbied (=paid) for but it's also not right. Many global issues could be solved quickly if every top company paid their fair share.

 

[The_Gream]

Are people not reading. Apple missed an investment threshold, the original 10 million probably more than made up for, but it has decided to basically double the original requirement for investment instead.

If you are wondering what Apple does for the USA. A lot. STEM is their primary one where they invest in technology for schools to help young adults learn coding and other tech skills. It is like some people are living under a rock and can’t remember all the investments they do in the US. Apple maintains like a 1 billion dollar program for US companies.

 

[raythompsontn]

Maybe, perhaps, Apple should tell Indonesia to stuff it, withdraw all investments, and stop all sales of all Apple products in Indonesia. Any Apple device activated in Indonesia should be immediately bricked. Let the Indonesians complain to their government. If Apple doesn’t, other two-bit, third world countries see what Indonesia did and also try to shakedown Apple.

 

[raythompsontn]

Work and lobby to make its tax bill as low as possible

That is exactly what I do. I use every possible, legal, method to reduce my taxes.

 

[turbineseaplane]

"Bribe" seems to have been misspelled as "investment"