A senior government official in Indonesia stated that Apple's proposed investment of 0.1 billion US dollars in Indonesia does not comply with the principle of "fairness".
According to the China Times Finance app, a senior government official in Indonesia stated that Apple's proposed investment of 0.1 billion US dollars in Indonesia does not comply with the principle of "fairness", indicating that the country's government is seeking further negotiations before lifting the ban on the sale of the domestic iPhone 16 series.
Minister of Industry Agus Gumiwang Kartasasmita stated on Monday that this investment amount is lower than the investment made by this American technology company in other countries.
For example, Apple has invested over 244 trillion rupiahs (15 billion US dollars) in its manufacturing factory in Vietnam, yet Apple's total market sales in Vietnam are only around 1.5 million units. In contrast, Apple's investment in developer academies in Indonesia is only around 1.5 trillion rupiahs, with approximately 2.5 million units in total market sales.
The latest remarks indicate that Apple faces more obstacles in seeking to lift the sales ban on its flagship product, iPhone 16, in the largest economy in Southeast Asia. The minister added that competitors such as Samsung Electronics and Xiaomi have invested 8 trillion rupiahs and 55 trillion rupiahs respectively in domestic production facilities.
"We hope Apple can return here to do business, but we need a fair solution," said Kartasasmita.
The Indonesian government has banned the sale of iPhone 16, citing Apple's failure to meet the localization requirements for smart phones and tablets.
The minister said on Monday that Apple's investment in India amounted to 1.5 trillion rupees, lower than the promised 1.7 trillion rupees in 2023, with a difference of about 10 million US dollars, "This is too small." To lift the sales ban, Apple proposed to increase the investment offer by 0.1 billion dollars.
Katassasmita said, "We hope Apple will send a negotiation team to meet with us."
The government's requirements include the U.S. technology giant fulfilling the remaining 10 million dollars promised investment from last year and providing better quotes for 2024-2026. The minister added that their top priority is still to have the company open a factory in India.
The ban is the latest example of Indonesia's tough stance, with the new President Prabowo Subianto attempting to pressure international companies to boost local manufacturing, which would benefit the domestic industry. Due to lack of investment, the country also prohibits the sale of Google Pixel phones.
Although Apple is not among the top six smartphone brands in India, the country is a potential growth market due to its young and increasingly tech-savvy population. Government data shows that this trillion-dollar economy has more than 0.35 billion active mobile phones, exceeding the country's population of 0.27 billion.
Katassasmita said, "We expect the Apple issue to be resolved quickly, as they also have a keen interest in doing business here."