Apple to begin iPhone 7 sales in Indonesia tomorrow, first R&D center set to open in Q2

Jakarta, capital of Indonesia, the world’s fourth largest country by population

As originally reported in December, Apple is currently in the process of building its first research and development center in Indonesia. According to a new report from The Jakarta Post, the research and development center will begin operations during the second quarter of this year while iPhone 7 sales will begin in the country tomorrow…

Apple’s new institution in Indonesia is said to develop educational programs for 300 to 400 local students, according to today’s report. The report cites Industry Ministry expert staff member Sanny Iskandar, who reportedly met with Apple representatives today.

Apple is planning three R&D centers in Indonesia and the first one will open in Green Office Park in BSD City, Tangerang. For those unfamiliar, Tangerang is a city located in the province of Banten. As for the other two R&D centers, one is said to be located in Java, while the other is said to be located in the Toba area in North Sumartra.

All together, Apple’s three R&D centers in Indonesia will cost the company $44 million. As has been reported in the past, this investment will put Apple in compliance with local regulations that say a certain percentage of production must occur in Indonesia in order for a product to be sold there. In this case, Apple’s $44 million R&D effort counts towards that regulation. Today’s report adds that the iPhone 7 will resume sales in Indonesia tomorrow.

The company was not able to sell several models of its iPhone 6 series after the government issued a regulation, which required phone makers to meet a certain amount of local content, including through the establishment of R&D centers.

Apple finally agreed to comply with the regulation early this year by committing to building the centers and pledging to pour US$44 million into the R&D in Indonesia until 2018. (yon) (tas)

Indonesia marks an important country for Apple’s business as it’s world’s fourth most populous country after China, India and the USA.

The regulations set forth by the Indonesian government are similar, albeit slightly more relaxed, than the ones set forth in India. Apple is continuing to work towards establishing an official retail presence in India and plans to begin manufacturing the iPhone in the country within 4-6 weeks. The timeline for an official retail presence, however, is unclear.