Apple’s new investment plan can significantly boost iPhone 16’s presence in the region.
The Apple iPhone 16 Series is banned in Indonesia because of a major prerequisite in the country. Foreign companies must fulfill the 40% “local component” requirement to proceed.
Cupertino is now proposing a $10 million investment to lift the ban of the iPhone 16 in Indonesia. According to a report, the investment will go to a manufacturing plant in Bandung, southease of Jakarta.
Wait, what? This is the workaround wherein foreign firms can invest in manufacturing, research, and development. Apple initially pledged $109 million but got a bit short and only invested $95 million, which prevented the Indonesian Ministry of Industry from granting the IMEI certification for the series.
Investing this way doesn’t necessarily lead to a local Apple manufacturing plant. Instead, it empowers the presence of the brand throughout the nation. Local firms will showcase the iPhone in stores, malls, and other establishments to attract consumer bases.
Apple isn’t the only one affected by this ban. Alphabet suffered the same fate that resulted in the ban of the Google Pixel smartphones. However, more than 20,000 of Pixel devices have already entered Indonesia through various means, including personal shipments and carry-on baggage.
Why foreign firms want the Indonesian market? It’s the largest economy in SEA and solidifying presence in Indonesia matters in long-term sales and growth.
