iPhone 16 Still Banned in Indonesia Despite $1B Apple Investment Deal

[MacRumors]

Apple is still barred from selling iPhone 16 models in Indonesia despite agreeing to build a local production facility there, as it has not met domestic content rules, the country's industry minister said on Wednesday (via Reuters).

Indonesia's minister of industry, Agus Gumiwang Kartasasmita, reportedly met with Apple's VP of global government affairs, Nick Ammann, on January 7 to discuss Apple's investment proposal. However, Agus later implied that the company's proposal was not yet adequate. "If it is $1 billion, then that is not enough," he told reporters after the meeting.

Last year, Indonesian authorities banned iPhone 16 sales after they determined Apple had failed to meet the country's requirement for 35% domestic content in smartphones. Apple has since offered a $1 billion investment in the country that includes building an AirTag factory. Apple's offer is a significant increase from its previous offers of $10 million and $100 million, which were rejected by the government.

Agus confirmed Apple had agreed to build a facility producing AirTag tracking devices on Indonesia's Batam island, close to Singapore, but that still would not count as a locally-made iPhone part.

"There is no basis for the ministry to issue a local content certification as a way for Apple to have the permission to sell iPhone 16 because (the facility) has no direct relations," he said, adding the ministry would only count phone components.

Indonesia's investment minister on Tuesday said the factory would start operations next year. The agreement will be seen as a success for President Prabowo's efforts to attract foreign investment while demonstrating the effectiveness of Indonesia's strategy to pressure international companies into developing products locally. The country remains a significant market for Apple, with over half of its 278 million residents under the age of 44.

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Article Link: iPhone 16 Still Banned in Indonesia Despite $1B Apple Investment Deal

 

[cicalinarrot]

I'll sit here with popcorns and wait for geoplitics and Indonesian's legal system and politics experts defending poor Apple.

Edit: I guess disliking this comments means "shut up, I'm actually 100% qualified to understand this stuff and not biased", good for you, folks.

 

[macmac30]

Anyone know what the sales opportunity lost is here? I would say Indonesia can F all the way off at this point! Indonesia should be careful…governments have been overthrown for less!

 

[Marbles1]

Good stuff. Go Indonesia! Large population, growing middle class, massive users of social media + phones.

168million Indonesians own a smart phone. around 60million of their 278million population are what would be considered middle class.

I've seen first hand that even poorer young people will go out of their way and spend significant money to get an iPhone.

Apple will need to learn to play nice and invest, invest, invest to create jobs these countries if they want to sell their expensive stuff.

And again, I'd much rather buy an iPhone manufactured in Indonesia (or India) - a democracy - than China. I would pay more for one. A bit annoyed that apple don't give us the choice. Even better if I could pick UK/EEA or Canada/USA.

 

[SamRyouji]

Anyone know what the sales opportunity lost is here? I would say Indonesia can F all the way off at this point!

Last time I read on some several news website, it's around 30 trillion IDR (~1.849 million USD) from all apple gadgets combined (iPhones, iPads, Macs) excluding the accessories.

 

[JPack]

$1B is nothing for a population of 300 million of which 90% are Android users. Should be $10B investment at least given the potential.

The AirTags assembly proposal is a joke. Nobody in SE Asia uses AirTags because iOS penetration is low. I understand there’s no chance of making advanced parts for iPhone, but at least make a factory that’s doing something more popular like AirPods or flex cables for iPhone.

 

[SamRyouji]

Good stuff. Go Indonesia! Large population, growing middle class, massive users of social media + phones.

168million Indonesians own a smart phone. around 60million of their 278million population are what would be considered middle class.

I've seen first hand that even poorer young people will go out of their way and spend significant money to get an iPhone.

Apple will need to learn to play nice and invest, invest, invest to create jobs these countries if they want to sell their expensive stuff.

And again, I'd much rather buy an iPhone manufactured in Indonesia (or India) - a democracy - than China. I would pay more for one. A bit annoyed that apple don't give us the choice. Even better if I could pick UK/EEA or Canada/USA.

Last time I checked, the labour costs here per one labourer is roughly 275 USD, per month. I don't know whether that's affordable for Apple or not.

 

[Johnny907]

Eh give it up, Apple. Stop begging for approval from a corrupt government looking for outside grift.
You already contribute enough with your H1B hires.
If they don’t see the benefit of your products in their country then cut ties and move on.

 

[aleksander]

Good stuff. Go Indonesia! Large population, growing middle class, massive users of social media + phones.

168million Indonesians own a smart phone. around 60million of their 278million population are what would be considered middle class.

I've seen first hand that even poorer young people will go out of their way and spend significant money to get an iPhone.

Apple will need to learn to play nice and invest, invest, invest to create jobs these countries if they want to sell their expensive stuff.

And again, I'd much rather buy an iPhone manufactured in Indonesia (or India) - a democracy - than China. I would pay more for one. A bit annoyed that apple don't give us the choice. Even better if I could pick UK/EEA or Canada/USA.

Didn't Cook mention in one of his interviews that basically China workforce outmatches everyone else in the world? Sure, some people would pay more for a locally made hardware but that's probably just 1%-ers, given how much it would have to cost.

 

[JPack]

Last time I read on some several news website, it's around 30 trillion IDR (~1.849 million USD) from all apple gadgets combined (iPhones, iPads, Macs) excluding the accessories.

Neither of those numbers make sense. The latest numbers from IDC estimate an ASP of $215 with 10 million smartphones per quarter.

 

[SamRyouji]

Neither of those numbers make sense. The latest numbers from IDC estimate an ASP of $215 with 10 million smartphones per quarter.

I know. The number's wild. But that number was quoted from Indonesia's govt. So... 🤷‍♂️ Yeah, take the number with a heavy pinch of natrium.

 

[mystery hill]

Next headline: "Apple CEO Tim Cook Donating $1 Million to Indonesian President's Fund"

 

[JoEw]

I suspect we’ll see more countries trying to leverage access to their markets for investment and knowledge share.

 

[one more]

Regrettably, an average annual income of an Indonesian is $3,340 = $278 per month. I guess a few people at the top of their financial pyramid can get their Apple gear elsewhere.

 

[3304614]

Next headline: "Apple CEO Tim Cook Donating $1 Million to Indonesian President's Fund"

I was just about to type something very similar, lol. You beat me to it, sir. (Or ma’am.)

 

[3304614]

Eh give it up, Apple. Stop begging for approval from a corrupt government looking for outside grift.
You already contribute enough with your H1B hires.
If they don’t see the benefit of your products in their country then cut ties and move on.

I know, right? We shouldn’t be outsourcing corruption. There are hardworking American politicians that need bribing… I mean, there are inauguration funds that need donating to… for “unity”!!!

 

[Lihp8270]

I don’t see how the 2 things are related.

Building a factory to make AirTags does not make the iPhone 16 meet the 35% requirements.

The only way you relate these 2 is by the suggestion that Apple is attempting to bribe the government to let them break local laws.

 

[wbeasley]

Problem Solved:

Apple to include 1kg of Indonesian rice with each phone.
Can be used to eat while using phone or a tech-related drying mechanism if phone gets wet.

Bought in bulk, this should add $1 to each phone cost.

You're welcome Apple.

 

[3304614]

Problem Solved:

Apple to include 1kg of Indonesian rice with each phone.
Can be used to eat while using phone or a tech-related drying mechanism if phone gets wet.

Bought in bulk, this should add $1 to each phone cost.

You're welcome Apple.

I… love that idea. Rice prices are super high right now here in Japan (had a rice shortage last summer that hasn’t fully been resolved yet). Or I suppose it has resolved itself with rice on shelves, but super high prices.

It’s soooooooooo (10 Os) expensive. Not as expensive as last summer, but… I’ll take an Apple-subsidized bag of rice with an iPhone purchase. Yes, please!

 

[sunapple]

“The “i” in iPhone now stands for Indonesia, Apple to invest all iPhone profits in the country. iPhone 16 still banned.”

 

[wbeasley]

So will Indonesia now also demand all laptops and tvs and white goods are 35% local content?

EU will no doubt be watching and waiting with baited breath in case this is another opportunity they can screw Apple over...

 

[amartinez1660]

What an interesting development...
When they say $1B it’s not enough, they haven’t accepted nor received it right? As in, the $1B offer can still be withdrawn.

 

[pksv]

$1B is nothing for a population of 300 million of which 90% are Android users. Should be $10B investment at least given the potential.

The AirTags assembly proposal is a joke. Nobody in SE Asia uses AirTags because iOS penetration is low. I understand there’s no chance of making advanced parts for iPhone, but at least make a factory that’s doing something more popular like AirPods or flex cables for iPhone.

So maybe 300 trillion dollars? 1 million dollars invested per person.

 

[I7guy]

I'll sit here with popcorns and wait for geoplitics and Indonesian's legal system and politics experts defending poor Apple.

I’ll be sit here with popcorn and wait for geopolitics and Indonesia experts on the legal system defending Indonesia,

 

[UK-MacAddict]

Good stuff. Go Indonesia! Large population, growing middle class, massive users of social media + phones.

168million Indonesians own a smart phone. around 60million of their 278million population are what would be considered middle class.

I've seen first hand that even poorer young people will go out of their way and spend significant money to get an iPhone.

Apple will need to learn to play nice and invest, invest, invest to create jobs these countries if they want to sell their expensive stuff.

And again, I'd much rather buy an iPhone manufactured in Indonesia (or India) - a democracy - than China. I would pay more for one. A bit annoyed that apple don't give us the choice. Even better if I could pick UK/EEA or Canada/USA.

Lol you think Indonesia and India are democratic 😂😂😂

You do know every government in the world is corrupt, no exceptions. US and UK are just as bad as China and Russia. They just have different ways of going about things.