Apple's efforts to lift the sales ban on its iPhone 16 in Indonesia have hit a roadblock. A senior Apple executive, Nick Amman, left Indonesia without a resolution after negotiations with the Indonesian government stalled. The impasse occurred despite President Prabowo Subianto's directive to his ministers to accept Apple's $1 billion investment proposal and resolve the issue.
Last October, Indonesia banned the sale of Apple's flagship products, citing non-compliance with local manufacturing requirements for smartphones and tablets. Apple's proposal included establishing a factory on Batam Island to produce AirTags and funding local educational programs to enhance technical skills. However, during recent discussions, Indonesian Industry Minister Agus Gumiwang Kartasasmita maintained the ban, insisting Apple must adhere to regulations requiring partial local production of iPhones or their components.
The situation highlights the internal power dynamics within the new Indonesian government and the challenges multinational companies face in such environments. Although Nick Amman has left Indonesia, other members of his team remain in Jakarta to continue negotiations.
This ongoing dispute underscores Indonesia's strategy to pressure multinationals into boosting local manufacturing to create jobs and stimulate the domestic industry. Critics argue that Indonesia's tough stance might deter other companies from expanding their operations in the country. Apple's investment aims to gain unrestricted access to Indonesia's 278 million consumers, over half of whom are tech-savvy and under 44 years old.
