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Apple to build R&D centre, component factories
Agreement signals end to protracted talks
iPhone 16 banned in Indonesia over local component rules
By Stanley Widianto
JAKARTA, Feb 26 (Reuters) - Apple AAPL.O should be able to sell its iPhone 16 phones in Indonesia soon, its industry minister said on Wednesday, after both sides agreed deals including an Apple manufacturing plant and a research and development centre.
This agreement signals an end to tenuous negotiations between Apple and Indonesia, which last year banned sales of the iPhone 16 due to Apple's failure to meet requirements on locally-made components.
Minister Agus Gumiwang Kartasasmita said the months-long negotiations with Apple had been "tricky", but the firm was now in the process of obtaining a local content certificate to sell its handsets.
"There's a principle of justness that we're trying to uphold," Agus told a press conference. "As much as it can add value to the red and white," he said, referring to the national flag.
Analysts have said the local content rules could hurt investor confidence and trigger protectionism concerns.
As part of the agreements with Apple worth more than $300 million, the firm will invest in a software research and development centre near the capital Jakarta, plus plants to produce components for its products, including its AirPods headphones, Agus said.
Apple did not immediately respond to a Reuters request for comment on the agreements. News website CNN Indonesia quoted an Apple representative on Wednesday as saying it was happy to expand its investment in the country and offer all its products to consumers.
Apple has no manufacturing facilities in Indonesia, a country of about 280 million people, but since 2018 it has set up local developer academies.
Companies can usually meet Indonesia's composition requirements through local partnerships or by sourcing parts locally.
Agus gave no timeframe for when Apple would get the green light to sell its iPhone 16 in Indonesia.
Apple was outside the top five smartphone brands in the third quarter of last year, according research firm Canalys.
(Reporting by Stanley Widianto and Ananda Teresia; Editing by John Mair, Martin Petty)
((Widianto.Stanley@thomsonreuters.com;))
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