In a statement released on the evening of November 20, Indonesia's Ministry of Industry confirmed it had received Apple's latest investment offer, which includes plans to establish a manufacturing facility for accessories and components. Agus Gumiwang Kartasasmita, Indonesia's Minister of Industry, blocked the sales permit for the iPhone 16 in October and is set to hold a meeting on Thursday, November 21, to discuss the proposal.
Febri Hendri Antoni Arif, a spokesperson for the Ministry of Industry, stated in the announcement that the meeting signals the Minister's openness to Apple's investment commitments.
In October, the Ministry of Industry blocked the iPhone 16's sales permit, citing the failure of Apple's local subsidiary, PT Apple Indonesia, to meet the requirement that 40% of smartphone components be produced locally.
Additionally, according to the Ministry, Apple has only invested IDR 1.5 trillion (approximately $95 million) in Indonesia through its developer academy, falling short of the promised IDR 1.7 trillion. For similar reasons, Indonesia has also banned Google's Pixel phones due to insufficient investment.
These measures are a continuation of strategies under former President Joko Widodo. In 2023, Indonesia banned China's ByteDance-owned TikTok to protect its retail sector from low-priced Chinese-made goods. This led ByteDance to invest $1.5 billion in a joint venture with Indonesia's GoTo Group's e-commerce arm, Tokopedia.
Apple does not operate standalone factories in Indonesia. Like most multinational companies, it collaborates with local suppliers to produce components or finished goods. By investing in Indonesia, Apple could gain greater access to the country's approximately 278 million consumers, more than half of whom are under the age of 44 and enthusiastic about adopting new technology.