According to official media, the Indonesian government anticipates Apple will expand its planned $100 million investment in the nation as the iPhone manufacturer looks for Jakarta’s approval to sell its newest models.
TakeAway Points:
- Apple’s iPhone 16 model has not been approved for sale in Indonesia since it does not adhere to the country’s 40% domestic content requirements for smartphones and tablets.
- The American IT giant has suggested investments of $100 million, but the government wants more, according to Indonesian state media.
- OpenAI, the company that created ChatGPT, has recently contemplated creating a web browser that would integrate with its chatbot and independently discuss or strike deals to fuel search functionality.
Apple wants to market iPhone 16 in Indonesia
The American tech giant’s latest smartphone model doesn’t meet Indonesia’s 40% domestic content requirements for smartphones and tablets and hasn’t been granted clearance to be sold in the country.
The purpose of the ban is to protect local industry and jobs, with officials asking Apple to increase its investments and commitments to the economy in order to gain greater access.
According to a report from Indonesian state media, the country’s Ministry of Industry met with representatives from Apple on Thursday regarding its proposal to invest $100 million over two years.
The funds would go toward a research and development center program and professional development academy in the country, as per the report.
The company also plans to produce accessory product components, specifically mesh for Apple’s AirPods Max, starting in July 2025, it added.
While the new offer is 10 times larger than a proposal that was reported earlier, the government is still striving to sweeten the deal to get a “fair” commitment.
Indonesia’s demands
“From the government’s perspective, of course, we want this investment to be larger,” industry ministry spokesperson Febri Hendri Antoni Arif told state media on Thursday.
He said that a larger investment would help the development of Indonesia’s manufacturing sector, adding that its domestic industry was capable of supporting the production of Apple devices such as chargers and accessories.
While Indonesia represents a small market for Apple, it also offers growth opportunities as it has the world’s fourth-largest population, according to Le Xuan Chiew, a Canalys analyst focusing on Apple strategy research.
“Its young, tech-savvy population with growing digital literacy aligns with Apple’s strategy to expand [global sales],” he said, noting that it also offers potential for manufacturing and assembly that supports Apple’s efforts to diversify its supply chain.
Success in this market requires a long-term approach, and Apple’s investment offer demonstrates a commitment to complying with local regulations and paving the way for future growth, he added.
OpenAI considers creating new browser that will integrate chatbot
ChatGPT-creator OpenAI has recently considered developing a web browser that would combine with its chatbot and separately discuss or strike deals to power search features, the Information reported on Thursday.
OpenAI has spoken about the search product with website and app developers such as Conde Nast, Redfin, Eventbrite, and Priceline, the report said, citing people who have seen prototypes or designs of the products.
The move could pit the Sam Altman-led company against Google, which commands the lion’s share of the browser and search market. OpenAI has already entered the search market with SearchGPT.
Google-owner Alphabet has been trying to boost its AI heft since ChatGPT’s launch in late 2022, answering back with its own generative AI chatbot, Gemini, last year.
OpenAI and Samsung collaboration
OpenAI has also discussed powering artificial intelligence features on Samsung-made devices, a key business partner of Google, the Information report said, citing people who were briefed about the situation.
The company already has a partnership with Apple, whereby the iPhone maker’s “Apple Intelligence” features on new devices are powered using the technology from OpenAI.
The information report, however, said OpenAI is not remotely close to launching a browser.
