Indonesian government expects Apple to invest more than $100M to bypas iPhone 16 ban

24 November 2024
The iPhone 16 series remains banned in the country until further notice.

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this article is not complete. apple never open official office or services in indonesia. so basically, over decade apple sold their product without paying single pennies tax to indonesia government because they dont officially sell their phone in indonesia. many vendors directly import apple product from foreign countries so apple bypassing indonesian tax.
its ridiculous how 1 trillion company only wanted to invest 10 million few years back, and indonesia government give apple time to finalize their 10 million investments but that never happened after few years. then the banned happened because apple backtrack their promise. now indonesia government wanted more than 10 million investment and after so much pressure from indonesia government they are upping their investment finally to 100 million but that still not satisfy indonesia government because they already give apple few years to finalize their investment yet apple never done it. and to add indonesia is their biggest south east asian market. so how ridiculous they evade tax over the years.
TLDR so basically 1 trillion company failed to invest 10 million after given time for years and never paid tax to local goverment for decade.

    • ?
    • Anonymous
    • 70d
    • 23 Nov 2024

    potato4k, 23 Nov 2024LOL. It doesn't matter as the rich Indonesians are buy... moreAs I understand it, if you live in Indonesia and import an Apple phone now, you have to pay a tax. This will make Apple phones unattractive to most consumers.

      Anonymous, 22 Nov 2024Worst mistake by the government if Apple leave bye hear the door99% of Indonesians don't care and support the government even though the market share here is 12% which is quite large with quite a large population here too.

      Apple still needs Indonesia, count how many times news like this has come out...

        • ?
        • Anonymous
        • 61E
        • 23 Nov 2024

        potato4k, 23 Nov 2024LOL. It doesn't matter as the rich Indonesians are buy... moreIf Apple were to build an official store in Indonesia, you can be sure that 100% of the riches will buy their Apple devices there. Also the ban is significant as even though you can buy from SG or somewhere else, there isnt a guarantee that the signal will continue to work or even work at all. So you'll end up with a Rp.20mil+ Wifi-only phones

          • G
          • GTO52
          • vgN
          • 23 Nov 2024

          Indonesian here, and I can call both of Apple and Indonesia government are mutually destructive affair.

          Apple reluctant to setup official store and hence only reseller with inflated price, no custom config, no official support and other perks where country with official Apple store exist.

          In other hand, due our govt bribery nature...ahem a.k.a corruption, I'm not sure about the investment will goes towards the future of Apple products here.

            • ?
            • Anonymous
            • PZs
            • 23 Nov 2024

            this is a thing in . id
            - the deal will never finals
            - everything with government affairs requires additional undocumented expenses
            - all government affairs, from smallest cluster physical neighborhood, to nation wide, plus military, plus police, plus political parties, plus labor, plus non political people organizations, they are asking for extra money

            its . id people that makes things difficult for foreign investment to make job for . id citizen

              Sono, 22 Nov 2024I will not be surprised if Trump bans access of American Te... moreUnlike Apple, Google never actually sold Pixel in Indonesia to begin with. The Pixel ban was just the Indonesian government pretending to be tough. Google literally has no intention to do so.

                MasTomi, 23 Nov 2024If Apple leave Indonesian market altogether, it's fine... moreLOL. It doesn't matter as the rich Indonesians are buying their iPhones from Singapore or Malaysia anyway. That's why Apple doesn't bother setting up shop there. Meanwhile, Apple willingly built 3 Apple stores in the tiny island Singapore. Apple knows that they can just do this and the Indonesians would still come.

                The ones losing are the distributors. I'll bet they will start lobbying the government to "work it out."

                  • ?
                  • Anonymous
                  • 7jZ
                  • 23 Nov 2024

                  MasTomi, 23 Nov 2024If Apple leave Indonesian market altogether, it's fine... moreIsn't it that most people there prefer chinese phones ? Why is apple being expected to invest so heavily there ? Apple knows that it's not worth the investment, but I guess it's all about the money and the officials want some free dollars to buy a luxury car and a big samsung tv

                    MasEnha, 23 Nov 2024Heard about the magic trick; the factories do only assembly... moreThat's how the Chinese fooled them. There's literally no knowledge transfer as pretty much the high tech parts are all already made in China. Those "factories" are merely putting parts together and test them. Basically low skill labor.

                    Even software side, it's just putting bloatware apps that nobody wants. The Chinese are basically only doing lip service.

                      • e
                      • escha
                      • KiN
                      • 23 Nov 2024

                      Anonymous, 23 Nov 202440% tax for not meeting the requirement of locally made com... moreBro, its not like that. 40% TKDN for products that sells only in Indonesia, not global. You see that the total investment was very small compared to to company value (1.7 billion vs 3.4 trillion, not even worth their 0.1%)

                        Anonymous, 23 Nov 2024Xiaomi meet the requirement by locally made packaging and a... moreHeard about the magic trick; the factories do only assembly and packaging. Assembling does not made 40% local components.

                        Left aside the software, Indonesian have nothing to do with the software except providing the vocabulary ofc.

                          • ?
                          • Anonymous
                          • ps8
                          • 23 Nov 2024

                          Apple not investing in Indonesia is a bad move as china brands are more than happy to take over the market from them. Once the chinese take control, it would be impossible for the US brands to defeat them (just like what happen to car industry today, especially the EV)

                            • ?
                            • Anonymous
                            • 7jZ
                            • 23 Nov 2024

                            It's clearly all about the money. The government is acting like a tax mafia. Pay up or get banned lol


                              • ?
                              • Anonymous
                              • Kx7
                              • 23 Nov 2024

                              Sono, 22 Nov 2024I will not be surprised if Trump bans access of American Te... moreThat would basically worse for them, since indonesia is the 4th largest country in the world (by its citizen number). Mind that american products such as meta, google, and windows is basically so common there

                                • ?
                                • Anonymous
                                • Kx7
                                • 23 Nov 2024

                                MasEnha, 23 Nov 2024I'm Indonesian and it's a shame. As what we have ... moreLol 😆

                                This regulation is good to avoid high consumerism

                                  They have invested $100M previously, but it has not been paid off yet, it is indeed appropriate for Apple to be banned 🗿

                                    We all need to acknowledge the current condition:
                                    1. SAMSUNG, VIVO, OPPO & Xiaomi all build factories in Indonesia to fulfil the domestic component criterion (TKDN).
                                    2. Apple requested the Indonesian government to give them 50 years free of corporate taxes, in order for them to invest in Indonesia. They claim that they are given this preference Vietnamese government, hence they ask the same in Indonesia.
                                    3. They can still sell iPhone 15 & current iPads but will not be able to sell for iPhone 16 and future iPads. So, this is up to Apple if they want to secure the future sales in Indonesia or not.

                                    There are 3 ways to secure the TKN level in Indonesia:
                                    1. Build a factory (The Android competitors opted for this)
                                    2. Create/develop local software an apps
                                    3. Build a technical center. This is the option that Apple supposedly plan for, they promised the government to create Apple Academy in Indonesia. This is where the investment figure supposedly go to. However up to today there has not been any development.

                                      • ?
                                      • Anonymous
                                      • B0@
                                      • 23 Nov 2024

                                      Who the fuck do they think they are to demand that companies do their research there? What an entitled insolent behaviour... They deserve to be left without smartphones and live in the last century

                                        Anonymous, 22 Nov 2024Worst mistake by the government if Apple leave bye hear the doorIf Apple leave Indonesian market altogether, it's fine, there's many Android manufacturers.

                                        It's Apple losing a huge potential market.

                                        And their phones overpriced anyway.

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