Last week, Apple was hit with a ban on its iPhone 16 and Watch 10 product lines in Indonesia. This restriction was due to its failure to comply with the country’s regulatory requirements for domestic production. To sell products in Indonesia, companies must ensure that the source of 40% of their content is local. Apple’s non-compliance with this stipulation resulted in a suspension of its sales within the region.
New Plan: Apple to Build Plant in Bandung
In a new shift, Apple now aims to work around the ban with a $10 million investment plan. According to a Bloomberg report, the tech firm will fund a new plant in the city of Bandung. The company will build the plant in a joint effort with Apple’s local ally, Yageo Corp, and will focus on parts and add-ons for Apple’s range of tech. This step is in line with the demands of the Indonesian rule, as the new plant will aid Apple in meeting the 40% local content goal.
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Apple has now sent its proposal to the nation’s Ministry of Industry. The company is keen to get the ban on its items lifted, yet it must wait for a green light from the ministry. The tech firm hopes that this plan will show its wish to grow ties with the region while also meeting the local rules. With the new plant, Apple hopes to prove its long-term goals in the country, which should boost both its name and local output.
Apple isn’t the only corporation encountering such challenges in the region. Google, another major technology brand, also experienced a ban on its Pixel 9 series in Indonesia. Similar to Apple, Google failed to satisfy the 40% local content requirement, leading to a suspension of its sales. This situation highlights a growing trend where the nation enforces strict compliance from international tech companies that do not meet its regulatory standards.
A Step to Grow Ties
Apple’s $10 million investment strategy is more than a simple workaround; it demonstrates the tech giant’s ambition to establish a long-lasting partnership within the region. By collaborating with Yageo Corporation, Apple seeks to satisfy local requirements and unlock further opportunities for its brand in this pivotal market.
