Nandini Roy Choudhury, writer
Brief news
- The Indonesian government expects Apple to increase its $100 million investment to gain market access for its latest smartphones, which currently do not meet local content standards.
- Apple plans to establish a research and development center and a professional academy in Indonesia.
- The investment reflects Apple’s commitment to local regulations and long-term growth in Indonesia’s expanding tech market.
Detailed news
It has been reported by state-run media that the Indonesian government anticipates Apple to enhance its intended investment of one hundred million dollars into the country. This comes as the iPhone manufacturer seeks authorization from Jakarta to sell its most recent smartphones.
Due to the fact that the most recent smartphone model from the American technology giant does not satisfy Indonesia’s 40% domestic content standards for smartphones and tablets, the company has not been given permission to sell the product in the nation.
Apple is being asked by officials to expand its investments and commitments to the economy in order to obtain wider access to the market. The ban is being implemented with the intention of protecting local manufacturers and employment opportunities.
The Indonesian Ministry of Industry reportedly met with executives from Apple on Thursday to discuss the company’s proposal to invest one hundred million dollars over a period of two years, as stated in a story that was published by the Indonesian state media.
In accordance with the study, the monies would be allocated to a program that would establish a research and development center as well as a professional development academy within the nation.
As an additional point of interest, the company has stated that it intends to begin manufacturing auxiliary product components, notably mesh for Apple’s AirPods Max, beginning September 2025.
In response to a request for comment from CNBC, Apple did not immediately provide a response.
Even though the latest offer is ten times greater than a proposal that was publicized before, the government is still working to make the agreement more appealing in order to obtain a commitment that is considered to be “fair.”
On Thursday, the spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif, stated to state media that “from the government’s perspective, of course, we want this investment to be larger.”
He stated that a larger investment would be beneficial to the development of Indonesia’s manufacturing sector, and he added that Indonesia’s domestic industry was capable of supporting the production of Apple devices such as chargers and accessories.
According to Le Xuan Chiew, an analyst at Canalys who specializes in Apple strategy research, Indonesia is a relatively minor market for Apple; yet, it gives chances for expansion due to the fact that it has the fourth-largest population in the world.
“Its young, tech-savvy population with growing digital literacy aligns with Apple’s strategy to expand [global sales],” he said, adding that it also offers opportunity for manufacturing and assembly, which helps Apple’s efforts to diversify its supply chain. “Its population is growing digitally literate,” he said.
The investment offer made by Apple reflects a commitment to complying with local regulations and preparing the way for future growth, he added. Success in this market takes a long-term approach, and Apple’s investment offer demonstrates that commitment.
Source : CNBC news
