While facing difficulties in selling its latest smart phones in Indonesia, its government has asked Apple to increase its proposed $100 million investment in the country.
Indonesia has special requirements to protect its local industry and jobs, stipulating that smartphones and tablets cannot be sold in the country unless they use at least 40% local components. This Thursday, after Apple’s new model failed to meet this requirement, the company’s representative met with the Indonesian Ministry of Industry to negotiate.
The American tech giant has proposed a $100 million investment over two years, with the funds allocated for a research and development center and a professional development academy in Indonesia. Additionally, starting in July 2025, Apple plans to begin producing accessory components, particularly mesh for its AirPods Max, in the country.
Although Apple’s offer is 10 times larger than their previous proposal, the Indonesian government is still requesting a larger investment. According to Febri Hendri Antoni, a spokesperson for the Ministry of Industry, the government wants the funds to help develop its manufacturing sector, while also confirming the nation’s capability to produce Apple devices.
Le Xuan Chiew, a Canalys analyst, noted that while Indonesia may be a smaller market for Apple, it boasts the world’s fourth-largest population, with a growing number of young, tech-savvy consumers. This demographic could help Apple boost global sales, while the country’s manufacturing capabilities could support the company’s efforts to diversify its supply chain.
Le Xuan also emphasized that success in a particular market requires a long-term approach. If Apple accepts this offer, it would mark a positive step forward, demonstrating the company’s commitment to complying with Indonesian laws and fostering future growth.
