A $10 million investment was initially proposed by Apple to set up facilities in Indonesia, with the company thinking that it would be sufficient to lift the iPhone 16 sales. Unfortunately, the government has taken offense to the Cupertino firm’s ‘low’ offer and would not lift the ban until more funds are poured into the region. According to the latest report, Apple has now increased the total investment to $100 million, making it ten times higher than the previous figure.
The $100 million amount will be invested by Apple over a period of two years and will likely boost iPhone production in Indonesia, creating heaps of employment
The Indonesian Ministry of Industry had previously barred the iPhone 16 from being sold in the country after Apple failed to invest around $109.6 million. The California-based giant attempted to appease the authorities with a $10 million investment, but this amount was not sufficient to get the ban lifted. Now, according to a Bloomberg report that was spotted by AppleInsider, the offer has allegedly been raised to $100 million, which will be invested over a period of two years.
Apparently, the Ministry of Industry has yet to make a decision but has demanded Apple to rethink its investment plans to focus on R&D. The company has previously made investments that went into manufacturing facilities and the creation of Apple Academies. In April 2024, a fourth Apple Developer Academy had opened, meaning there could be a plan to open up more of them.
The Indonesian government is likely aware that Donald Trump’s administration will mean that China will be in the crosshairs of possibly more trade sanctions, and Apple will likely want to branch out. The iPhone maker has previously attempted to set up production facilities across India and Vietnam for various products, and the Indonesian government wants to take full advantage of global events by ensuring the region becomes one of the leading Apple production hubs in the world.
News Source: Bloomberg
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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