Indonesia expects to receive a $1 billion (about Rs 8,470 crore) investment commitment from tech firm Apple Inc in a week, its investment minister said on Tuesday, as the government seeks to meet local content laws. After failing to ban the sale of the iPhone 16.

Indonesia halted sales of the smartphone because it is required to contain at least 40 percent of locally sold parts, which Apple says it did not comply with. A deputy minister said on Tuesday that Indonesia plans to increase the requirement.

Investments Minister Rozan Roslani told lawmakers at a hearing that if Apple decides to make the country part of its supply chain, Indonesia expects more investment.

Apple did not immediately respond to a request for comment.

“Whoever benefits from the sales should invest here, create jobs here. What’s important is how the global value chain moves here, because once that happens, the suppliers will have to do it,” Rosen said. Let’s follow up,” Rosen said, adding that the investment commitment is part of the first step.

Apple had earlier proposed to invest $100 million (about Rs 850 crore) in Indonesia to build an equipment and components plant to circumvent the ban, but the government rejected it on the grounds that It did not meet the principle of justice.

Apple has no manufacturing facilities in Indonesia, a country of about 280 million people, but has established application developer academies since 2018. Indonesia sees the strategy as an attempt to meet the need for local content to sell older iPhone models.

Companies typically increase local manufacturing through local partnerships or by sourcing parts locally.

© Thomson Reuters 2024



Source link