One in five AirTags to be made in Indonesia to end iPhone 16 ban

aviation label According to a new report, the product will be produced in Indonesia for the first time, with production increasing over time to account for 20% of global production.

The plan is Apple’s way of meeting government demands for a $1 billion investment in the economy to reverse a ban on iPhone sales in the country…

Apple forced to invest $1 billion in Indonesia

Governments of populous countries are increasingly shrewd in seeking quid pro quos to allow Apple access to their markets and demand foreign investment in return.

For example, India Apple famously refused to open Apple Stores in the country until the iPhone maker established a large-scale manufacturing facility in the country.

Indonesia’s initial request for an investment of US$109 million in Apple was relatively modest. There’s a developer academy therewith an additional $10 million in manufacturing spending. However, when this goal was not fully achieved, the government significantly upped the ante. it Banning the sale of iPhone 16and require far away Larger investment.

Apple originally offered $100 millionBut the government says that’s not enough. then it says it wants Billions of dollars in manufacturing spending in the country. We heard earlier this month Apple has agreed to thisalthough we don’t have any specific details.

Bloomberg There are reports that the two parties have reached an agreement, and Apple is arranging for one of its suppliers to produce AirTags in the country and gradually increasing production until one-fifth of AirTags are produced in the country.

An Apple supplier will set up a factory in Batam to produce AirTags, people familiar with the matter said. The factory is initially expected to employ about 1,000 workers, with Apple choosing Batam, about a 45-minute ferry ride from Singapore, because of its free trade zone status, which exempts the company from value-added tax and luxury goods tax, as well as import duties, people said. , responsibilities […]

The factory will eventually account for 20% of AirTags global production.

This will account for the bulk of the required investment, while other accessories and more Developer Academies will make up the balance.

While nothing has been announced publicly, the Indonesian president is said to have accepted Apple’s offer.

President Prabowo Subianto approved the government’s acceptance of a $1 billion investment from the U.S. technology giant, people familiar with the matter said.

photography: Jonas Elia exist Not splashed