Indonesia increases pressure on Apple

Will invest, will not invest? Indonesia is awaiting confirmation from Apple of a new investment of 1 billion dollars (960 million euros), the result of a clash that began in October with the ban on the sale of the iPhone 16, its latest smartphone, in this country of 277 million inhabitants.

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Apple is ordered by Jakarta to increase, for its smartphones sold in Indonesia, the proportion of components manufactured domesticallya policy known as TKDN (national content level certificate) which provides access to the Indonesian market for many product categories, from medical equipment to solar panels to electric vehicles. For 4G and 5G smartphones, the TKDN sets 35%. A manufacturer can, however, defer this if it is credited with a sufficiently high rating thanks to alternative investments in training, research and development, and software.

This is what Apple had chosen: the Cupertino (California) company created three Apple Developer Academy to train coders and designers, but did not reach the promised threshold in 2023 of 1,600 billion rupees (95 million euros) of investments. The Indonesian government therefore threatened to suspend the license for its 2024 model, the iPhone 16. Apple proposed an extension of 10 million dollars then, faced with a new refusal, of 100 million dollars, in the form of a fourth academy, Bali, and a earphone pad factory. New end of inadmissibility: Apple's proposal, protested Jakarta, derogates from fairness principles in terms of job creation and local content compared to its competitors.

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