Indonesian Investment Minister Rosan Roeslani said the country is by Apple as an investment. It is important to note that Indonesia has done this local sales because smartphones must contain at least 40% locally produced parts. Apple does not have manufacturing facilities in Indonesia, so it cannot meet this requirement.
Roeslani also said that Apple should invest even more in the future if it plans to make Indonesia part of its supply chain. He also highlighted how an Indonesian Apple plant could create jobs.
Previously, Apple had proposed to do so in the construction of an accessories and components factory in Indonesia. The Indonesian government this is due to failure to respect the “principles of equity”.
While Apple does not yet have local factories to meet the 40% local content requirement, it does have application developer academies in Indonesia. That’s why older iPhone models were allowed to be sold in the country. For now they remain on sale and there is no indication that Indonesia is currently seeking to ban them.
Reuters has reached out to Apple for comment on the situation but has not yet received a response.
