The ban was initially imposed on the after Apple failed to meet the requirement that at least 40% of smartphone components be sourced locally. The Indonesian government took this step aimed to bolster domestic manufacturers and ensure that international companies contribute to the local economy. Well, this ban had , as its sales were entirely down in Southeast Asia’s largest economy.
Apple has tried to resolve the issue many times and proposed a $100 million investment to address the local requirements. However, this offer was not satisfactory to the Indonesian authorities, and they demanded a more significant investment to enhance their local manufacturing and development sectors.
After extensive negotiations, the company finally agreed to invest more than $300 million in the Southeast Asian nation on Wednesday. This includes a software research and development center near Jakarta and establishing manufacturing facilities to produce components for its products, including AirTags and AirPods.
The latest report by the Ministry of Industry revealed that this investment plan will span from 2025 to 2028 when the company will build two other facilities. One will be located in Bandung in West Java to manufacture accessories, and the second will be in Batam near Singapore worth $US150 million to . Therefore, sources mention that this investment will reach approximately $1 billion overall.
Though initially, Apple was forced to manufacture iPhones locally, in this deal, the government of Indonesia has admitted some retreat, and now, Apple will produce accessories and invest in local talent development through training programs and coding academies.
