Apple has been having a rough time in Indonesia, but following extensive investment negotiations aimed at getting the iPhone 16 un-banned, an agreement sounds imminent. And it’s reportedly costing the full $1 billion the Indonesian government expected.
$1 billion investment follows rejected offer of $100 million
After the iPhone 16 was banned for sale in October due to the government saying Apple isn’t investing enough in the economy, Apple and the Indonesian leaders have been back and forth on negotiations.
Originally, Apple was going to invest $109 million into a developer academy, but the government said Apple only spent $95 million.
When the government banned iPhone 16 sales in response, Apple offered to boost its manufacturing investment in the country from $10 million all the way up to $100 million.
Earlier this week, the Indonesian investment minister expressed his expectation that Apple would invest not $100 million, but a hefty $1 billion in manufacturing.
The minister seemed quite confident that Apple would meet the demand, and now it appears they are on track to do so.
Tech giant Apple plans to invest $1 billion in a manufacturing plant in Indonesia that produces components for smartphones and other products, Indonesia’s investment minister said on Thursday.
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Investment minister Rosan Roeslani told reporters that details of the planned investment were still being ironed out, but when asked confirmed it was the expected $1 billion investment he had flagged earlier this week.
“We will discuss with them some more … our hope is for everything to be announced in the next week after receiving a written commitment from them,” he said.
Apple hasn’t commented or made any announcements, but it sounds like word should be coming before long.
9to5Mac’s Take
Assuming the investment minister is accurately representing discussions with Apple, the two parties appear to have reached at least a verbal agreement on the $1 billion investment.
Reuters notes that “Apple currently has no manufacturing facilities in Indonesia, a country of about 280 million people.” So a $1 billion investment would be a huge difference maker for the economy and for Apple’s global manufacturing operations.
What do you make of today’s news? Do you expect any other countries to follow Indonesia’s negotiating playbook? Let us know in the comments.
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