Indonesia won’t lift iPhone 16 ban unless Apple starts manufacturing iPhone components locally

09 January 2025
Apple previously committed to a $1 billion investment, but that was still insufficient for the Indonesian authorities.

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The Industry Minister not changed since 2019. Still him. The president change at end of 2024. So it is the new president’s decision

    • ?
    • Anonymous
    • mA{
    • 14 Jan 2025

    Anonymous, 10 Jan 2025Lol, they keep adding new conditions & milking Apple to... moreWho cares?... They can shove their phones, for all I care. People will adapt. They're just phones.

      Anonymous, 10 Jan 2025Lol, they keep adding new conditions & milking Apple to... morewhat can apple do?
      spark a rebellion? Lol....

        • ?
        • Anonymous
        • 70d
        • 12 Jan 2025

        Anonymous, 10 Jan 2025Lol, they keep adding new conditions & milking Apple to... moreNo, the law is the same. Try reading.

          • o
          • olmek
          • 099
          • 12 Jan 2025

          Good for Indonesia.

            • ?
            • Anonymous
            • vak
            • 12 Jan 2025

            Australia will probably do it offer it to them.

              • ?
              • Anonymous
              • vak
              • 12 Jan 2025

              Import it simple lol.. apple rich can pick whom they like

                • Z
                • Z
                • sSV
                • 11 Jan 2025

                Anonymous, 10 Jan 2025Lol, they keep adding new conditions & milking Apple to... moreLet them try

                  Anonymous , 09 Jan 2025Idonesia isn’t just asking for ‘free Apple money’—it’s prot... moreLarge population? Yes
                  Large market? NO

                    What if the EU starts requiring Indonesian palm oil to be made in the EU?

                      There's no way Apple can meet the 40% Indonesian content requirement unless it also reduces quality.

                        • ?
                        • Anonymous
                        • vGN
                        • 11 Jan 2025

                        In simple words, they are blackmailing Apple but the real losers are the locals like me who can't buy the phone until the ban is lifted...

                          • x
                          • xiaomeme
                          • 7Xn
                          • 10 Jan 2025

                          Serves apple right in the face. Props to indonesia, that's how you milk a company who is notorious for milking people.

                            • ?
                            • Anonymous
                            • fI%
                            • 10 Jan 2025

                            Lol, they keep adding new conditions & milking Apple to the max.

                            Be careful, Apple could make a drastic decision if you push them too hard.

                              • ?
                              • Anonymous
                              • vV5
                              • 10 Jan 2025

                              anonymous, 09 Jan 2025It's not just only a smartphone. You probably don'... moreIt's so difficult reading this post.

                                Some governments in some countries are so stupppid

                                  • R
                                  • Reason is..
                                  • XVc
                                  • 10 Jan 2025

                                  Apple faces significant challenges due to its highly structured and closed business model, which makes it difficult to adapt to local regulations like Indonesia's TKDN (Domestic Component Level) requirements. Here’s an explanation of the challenges they face:

                                  1. Centralized and Controlled Business Model
                                  Apple operates a very centralized business model. Most of Apple’s products, such as iPhones and MacBooks, use components sourced from abroad. This is different from companies like Oppo or Xiaomi, who are more flexible in partnering with local factories. Apple prefers to work with strictly controlled suppliers and produce their products in countries with lower production costs. This makes it difficult for them to meet TKDN requirements, which demand that a portion of the components and production happen locally.

                                  2. Difficulty Adapting R&D to Local Needs
                                  To meet TKDN, Apple would need to carry out research and development (R&D) in Indonesia. However, Apple traditionally conducts most of its R&D in more developed countries, such as the U.S. or European countries, where they already have advanced facilities. Setting up R&D centers in Indonesia to meet the regulations would take time and significant investment, which is a shift from their usual approach. This makes it harder for Apple to quickly adapt to local requirements compared to other manufacturers.

                                  3. The Need for Large Investments
                                  For Apple to meet local production requirements, they would need to make substantial investments. This could mean building new factories or shifting some of their existing production lines to Indonesia. This would require significant financial commitments and a major overhaul of their global supply chain, which is already optimized for cost-efficiency in countries like China and India. Other manufacturers like Oppo, on the other hand, are more willing to make such investments in Indonesia.

                                  4. Ecosystem Integration
                                  Apple’s ecosystem is very closed and operates in a tightly controlled manner. This means that any major changes in their business model or production processes could potentially disrupt the integrity of their ecosystem, where all devices and services are designed to work seamlessly together. This rigid structure makes it more challenging for Apple to adapt to local regulations compared to companies with more flexible and adaptable business models.

                                  Conclusion:
                                  Apple faces significant challenges due to its centralized business model and rigid approach to production and R&D. While other companies are more willing to adapt and invest locally in countries like Indonesia, Apple’s global business model requires careful consideration and adaptation to meet local requirements like TKDN. If Apple wants to maintain its competitive position in the Indonesian market, they will need to reconsider their approach to local production and investment, even though this means adapting their established business model.

                                    Dyfqi, 09 Jan 2025Totally agree with you, especially your last sentence. Ind... moreBecause Apple is a western brand know for it's greedy, not just Apple but Pixel too which also not officially available in Indonesia. Yeah talking about how greedy our gov is as most people say here. Our gov wants this stuff to be official, create jobs, create local components etc. It could end up being cheaper products to buy, have warranty etc

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                                      • Casio
                                      • gLI
                                      • 09 Jan 2025

                                      Well done Inodnesia! All countries should follow. If McD has to use the local potatoes to be allowed to operate in Europe why shouldn't Apple do the same

                                        • ?
                                        • Anonymous
                                        • Fv1
                                        • 09 Jan 2025

                                        potato4k, 09 Jan 2025Meh. Chalk it up to Foxconn. Unlike Samsung and other Andro... moreYou are still spreading this myth that Foxconn is the only assembler of iPhones.. that is so far from the truth. Tata is taking over the iPhone market rn.