Previously, we shared how the Apple iPhone 16 Series is banned from being sold in Indonesia until the tech giant fulfils a few requirements, including investing in the country and renewing its local content requirement certification, known as TKDN. The tech giant then proposed a USD100 million or RM446 million investment to lift the ban but was ultimately rejected by the Indonesian Government.
Now, it is reported that Apple and the Indonesian Government have reached an agreement so that the iPhone 16 Series and other Apple products will be permitted to be sold in the country, which involves the company investing a whopping USD1 billion or RM4.51 billion in the country.
The Indonesian Government has agreed to Apple’s RM4.51 billion investment proposal
For illustration purposes
Sourcing an insider, Bloomberg reported that the lifting of the iPhone 16 ban in Indonesia is imminent as its President, Prabowo Subianto, has given his approval for his government to accept the RM4.51 billion investment from the tech giant.
The report added that the Indonesian Government was receptive to the proposal after Prabowo was briefed on the matter over the weekend at a meeting, where he then greenlit the proposal and urged his Cabinet members to obtain more investment in the future.
The agreement was partly thanks to Apple’s expansion of its investment plan which it presented in an official written proposal to the Indonesian Government.
For illustration purposes
Apple will invest in setting up factories in Batam and Bandung
Notably, the proposal included the setting up of a plant producing AirTags, Apple’s tracking device, on the island of Batam near the Malaysian border in Johor.
The plant is expected to initially employ around 1,000 workers, with Batam being chosen due to its free-trade zone status, which exempts companies from value-added and luxury taxes, as well as import duties.
Besides that, the RM4.51 billion proposal also includes the setting up of a plant to produce accessories in Bandung in West Java, as well as funding Apple academies in Indonesia to equip students with tech skills such as coding.
For illustration purposes
An Indonesian Economic Ministry spokesperson confirmed the investment agreement
The exact date for lifting the iPhone 16 ban was not disclosed, with an Indonesian Economy Ministry spokesperson debunking viral claims on social media that Indonesians can pre-order the smartphone series starting today.
The Indonesia-based publication Detik quoted the spokesperson, Febri Hendri Antoni Arif, as saying that as of the time of writing, no approval has been given yet to Apple and advised consumers in the country to be wary of scams posing as Apple resellers.
However, Febri did confirm that the Indonesian Government has agreed to Apple’s RM4.51 billion investment proposal.
For illustration purposes
So, what do you guys think of the whole situation? Share your thoughts with us in the comments.
