Jakarta – By Tom Fisk/Pexels
Indonesian authorities have proposed a $100 million funding boost from Apple, but only if the tech giant agrees to additional conditions prior to lifting its ban on the platform.
“Indonesian Trade Minister Agus Gumiwang Kartasasmita convened a confidential meeting to discuss a proposed initiative,” said authorities’ spokesperson Febri Hendri Antoni Arif. While the federal government’s preferences for increased funding are understandable,
The Indonesian government’s policy requires that local smartphone production must contain a minimum of 40% regional components? The proposed Home Content Material Stage regulation is expected to be addressed through various strategies, including innovation growth initiatives that Apple has previously endorsed.
Apple’s initial investment, however, was significantly less than the $109.6 million it had previously committed. Following warnings to Apple that it might face a potential ban, Indonesia responded by blocking the sale of all iPhone 16 models.
Despite initial reports suggesting otherwise, it has been revealed that Apple provided an additional $10 million in funding. On November 19, it further escalated the situation.
According to reports, an estimated $100 million in supplementary financing was planned for a period of two years. This platform could primarily serve as a hub for analytics and growth, as well as developer academies, in both Bali and Jakarta.
Although a manufacturing issue existed, another concern emerged: Apple allegedly planned to shift mesh component production to Bandung from July 2025 onwards.
Indonesia reportedly demands more manufacturing commitment from Apple, however.
“While Indonesia is currently unable to manufacture high-tech components like semiconductors domestically, our local suppliers would be able to provide the necessary parts to meet Apple’s requirements, according to spokesperson Febri Hendri Antoni Arif.” We’d actually be eager to provide assistance.
The potential outcome will have a compounding effect, particularly with regards to labour absorption in Indonesia.
The band and the next round of negotiations await a response from the nation. Met with Indonesia’s then-President Joko Widodo to discuss potential collaborations, specifically expressing Apple’s willingness to consider the country as a production partner in future endeavors.
“When discussing the president’s emphasis on domestic manufacturing, I noted our willingness to explore this topic further,” said Dinner. “In Indonesia, the availability of funding options is virtually limitless.”
