Apple finally gave in to Indonesian demands. Very recently we were talking about the blocking of sales of the iPhone 16 in the country. And Indonesia is one of the largest economies in the Pacificand Apple couldn't sell its new iPhones. The reason? The Indonesian government forced them to invest money in the country in the form of factories or through a mechanism for the population to work and generate wealth.
Some have accused them of blackmail, and Apple could even stop selling in the country. Something that is also being heard in Europe due to the limitations that existed regarding Apple Intelligence. However, The Cupertino company has reached an agreement. Indonesia won the race and Apple will invest $1 billion and set up an AirTag factory on Indonesian land.
The agreement that unlocks the iPhone 16 situation in Indonesia
According to sources close to the negotiations, the Indonesian president gave the green light to Apple's proposal after a meeting held this weekend. The plan includes the construction of a production plant on the island of Batam, which will be responsible for manufacturing no less than 20% of global production of AirTags. Something that becomes more important now that we know that the second generation of Apple's locator will arrive in 2025. AirTag sales estimates were around 20 million and 35 million units in 2021 and 2022. Thus, between four and seven million AirTags will be manufactured in Indonesia if shipments are similar to previous years.
And where are they going to install this new factory? In Batam, a small island in the archipelago, but with a crucial position. This just 45 minutes by ferry from Singapore. In addition, this site benefits from free zone status, which exempts companies from value-added taxes, luxury taxes and import duties.
An AirTag factory, accessories and study academies
Apple's investment to sell the iPhone 16 in Indonesia is not limited to manufacturing the AirTag. The agreement also includes:
- A new factory in Bandung for the production of other accessories
- Investment in Indonesian Apple Academies
- The creation of around 1,000 first jobs
This victory for Indonesia could mark a before and after in relations between large technology companies and countries. Of course, this set a precedent, and it is The Indonesian government has demonstrated its position of strengthsupported by a market of 278 million consumers, more than half of whom are under 44 and technologically active. An audience too juicy to miss.
The deal is not yet completely done, although it has been agreed upon. The Indonesian government has not set a specific date to allow the sale of the iPhone 16 again, but everything indicates that this will be in the coming weeks. Will we receive an AirTag 2 made in Indonesia?
Source | Bloomberg
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