This week, Apple representatives and the Indonesian Ministry of Industry held a four-way meeting to resolve the issue of allowing the iPhone 16 series to be sold in the country. Yesterday, Apple agreed to open a $1 billion Apple Tag factory on Batam Island that will be operational next year. However, the Indonesian government is still reluctant to allow the iPhone 16 series to be sold.
This is because AirTag production does not meet the requirement that 40% of smartphone components must be produced domestically according to Indonesian law. Yesterday, we reported that Indonesian Industry Minister Agus Gumiwang Kartasasmita had already said that an investment of $1 billion was still not enough for Indonesia.
Discussions between Apple and Indonesia will continue to reach an agreement. Apple does not have a production factory in Indonesia. Previously, the need for local components to sell iPhones was met through the investment in Asia's first application development academy in Indonesia seven years ago.
As the country with the fourth largest population in the world, Indonesia can impose conditions on companies that want to enter their market. In this case, Indonesia may want to see a large investment by Apple like in Vietnam.