Indonesia reportedly expects Apple to commit to investing $1 billion to build new manufacturing plants in the country for the local iPhone 16 sales ban to be lifted, according to a new statement by the investment minister (via Reuters).
Rosan Roeslan, Indonesia’s investment minister, reportedly made the announcement during a private hearing with Indonesian lawmakers on Tuesday. The country doesn’t seem satisfied with Apple’s latest offer of $100 million, and as such expects the company to invest more if it wants Indonesia to be part of its supply chain.
“Whoever benefits from the sales must invest here, create jobs here. What’s important is how the global value chain moves here, because once it does, suppliers follow,” Rosan has stated. The minister also hinted that Apple might have to invest more than $1 billion down the line as it’s seen as a first phase.
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Apple first pledged to invest $10 million in Indonesia to lift the iPhone 16 sales ban enacted in October, before significantly raising its offer to $100 million shortly after. Both offers have been rejected, and Apple is left with no choice but to significantly up its offer if it wants to gain access to the country’s market of 280 million inhabitants.
The development comes as Apple’s subsidiary in Indonesia hasn’t fulfilled the country’s 40 percent local components production quota for smartphones and tablets. The country’s Ministry of Industry confirmed the iPhone 16 sales ban in a statement. However, older Apple products can still be sold and marketed in the country.
