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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  • Anonymous
  • Bn5
  • 09 Jan 2025

anonymous, 09 Jan 2025It's not just only a smartphone. You probably don'... more100% agree with this.

It is baffling that some people are willing to buy thousand dollars phone that do not have a single service center in the country. It's also funny that some people here defending apple as if they're the good guy (spoiler alert : apple tried to screw their user in the past, they never really cared about you, they only care about your money).

Every government try hard to protect it's country's economy (not just indonesia, even the US administration is already imposing heavy taxes to protect it's electronic and car business). While other brand faithfully follow the rules, the arrogant apple is trying to bend Indonesia's government to their will, and surprise surprise, the minister fight back! Now apple is f*ck up, either they lose money for bringing manufacturing facility to Indonesia, or lose market share to china's brands (which will become future problem politically as US will lose influence to china in the largest demography in south east asia).

    Anonymous, 09 Jan 2025No. Your government just wants free apple money. Apple can&... moreOur government also doesn't ask for mega factories like China and India... if that is the case it means 100% TKDN, our government only wants 40% that's it, what's so difficult?

    People here seem to know more than Indonesians themselves.

      Anonymous, 09 Jan 2025Regardless of where the parts coming from assembly factory ... morethey are asking for 50 years of tax holiday.. which is insanely a long time.

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        • anonymous
        • BpN
        • 09 Jan 2025

        Anonymous, 09 Jan 2025I dont know what is wrong with the Indonesian government. I... moreIt's not just only a smartphone. You probably don't think about other aspects that Indonesian government wants to protect. One of it is Foreign Direct Investment that can create impact in Indonesian economy/market and also possibility of creating more jobs for the local people. By only importing and selling in Indonesia also have risk of manufacture negligence in after sales service which is very common problems for apple products to countries where it doesn't have apple store. Even Apple doesn't want to open Apple Store in Indonesia for sales. It is only cooperated with other local company which in return will benefit more to Apple for lower cost of marketing and sales operation.

        If there is an apple store and in within warranty period, the unit will be covered with replacement unit in immediate time for factory faulty, while in Indonesia even asking for checking broken unit is very difficult not say to service the unit. And furthermore, importing the unit only will consume country's devisa because the mass conversion to USD and it is not small, making the unit will be very much expensive when converted to local currency. Lots of negative sides actually for Indonesian consumers. Yes, it is only a phone that can call and text in essence but for those who are already trapped in the ecosystem, will find it very difficult to move to others and will still craving for Apple products.

          • ?
          • Anonymous
          • 7jZ
          • 09 Jan 2025

          rizki1, 09 Jan 2025what has no reason? You all don't seem to understand t... moreNo. Your government just wants free apple money. Apple can't setup a factory in every country and they don't have to, do you not understand the economics behind it ? What they are doing with apple is clearly extortion

            DBS, 09 Jan 2025LMFAO Oh nooooo! Whatever will Apple do without the oh so ... moreApple is not stupid. They literally set up three stores in a tiny island Singapore. Why? They know Indonesians go there. I’m predicting more Apple stores being planned for Malaysia in the future.

              • ?
              • Anonymous
              • 0p}
              • 09 Jan 2025

              Darth Caesium, 09 Jan 2025So protecting small businesses in Indonesia requires daddy ... moreBasically, the Indonesian government wants foreign tech companies to help in developing the country and, in return, these companies get access to Indonesia's sprawling and lucractive market. Which is the same policy of the Indian government. I don't think Apple is going to have a problem getting a return for their 1 billion dollar investment. Of course, being Apple, they probably don't want to pay it and Tim is probably lobbying DT to invade Indonesia or something.

                Darth Caesium, 09 Jan 2025So protecting small businesses in Indonesia requires daddy ... moreThe intention is good, similar to India, ie to boost local manufacturing, and the side effect of knowledge transfer.

                Problem is, unlike some countries, Indonesian labor are low quality. They’re alright for things like textiles manufacturing , but not for high tech. All those Samsung and Chinese factories are simply assemblers. All the components are still being imported.

                Worse, their regulations are extremely volatile, changing every year, and sudden. Running a business am there is high risk. There’s a reason Tesla skipped the country and opted for Malaysia instead. Nvidia skipped Indonesia as well.

                  Meh. Chalk it up to Foxconn. Unlike Samsung and other Android OEMs, Apple actually doesn’t have their own factories. The Taiwanese win again, getting gnomes from Apple.

                  The losers are those authorized distributors not able to capitalize on new iPhone sales. Since some of them are owned by rich conglomerates, I can predict some nudging to the government to relax things a bit.

                  Meanwhile, Indonesian consumers couldn’t care less. The target market for iPhones would’ve already bought one from Singapore or Malaysia if they wanted an iPhone 16.

                  In short, this is a non issue in general. Apple is not even in a hurry to solve this. They know they can serve their Indonesian customers through Singapore.

                    • ?
                    • Anonymous
                    • SvB
                    • 09 Jan 2025

                    My goodness, they prefer to cut income from iphone sales to the country VAT and so on just to make a point..this is dictation and narcissism from their people in power at least

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                      • DenFx
                      • sSZ
                      • 09 Jan 2025

                      Nah, 3rd world country able to make Apple offering 1 Billion for continue selling their products is insane. 1-2% of the poppulation can still buy Newer Iphones from neighborhood country such as Singapore & Malay (Yes, both countries have Apple Stores). it means Apple already forseen Indonesia potential markets and the local goverment trying to takes advantages of it

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                        • AnonD-1187262
                        • t}X
                        • 09 Jan 2025

                        Anonymous, 09 Jan 2025Welcome to capitalism (everyone does what they want)...World order has significantly changed after Proxy Kingpin Nasrullah died, Elon is in backfoot even if he has a government, He dosnt like F35 and he will tell you what It has to say about him. Most of all their has been a mindset change in the minds of investors. Quality value has gone up while quantity value has gone down. Technology always favors the superior, I think that much is clear to everyone. Some say the higher order is confused but that not the case. AI speaks the rite things so Hardworking people dont has to speak more often. Their are low lifes who try to influence diplomatically but the society regulators has made an unbreakable wall. Most might not like it but Maximum are not needed the banks agree to that now.

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                          • Anonymous
                          • PWc
                          • 09 Jan 2025

                          Anonymous, 09 Jan 2025Regardless of where the parts coming from assembly factory ... moreSo 1 billion is not enough?

                            • ?
                            • Anonymous
                            • MFI
                            • 09 Jan 2025

                            Darth Caesium, 09 Jan 2025So protecting small businesses in Indonesia requires daddy ... moreApple doesn't need to officially enter the Indonesian market, It's their choice to do so, no one is forcing them.
                            And It's given that Indonesian politicians would directly profit from this investment, but Apple wouldn't care If they make way more money in return.

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                              • Anonymous
                              • MFI
                              • 09 Jan 2025

                              Anonymous, 09 Jan 2025Since when China is richest country? Their average yearly i... moreAs a country It's one of the richest countries and yeah, they were dirt poor in the past.
                              Of course If you divide GDP per capita then not, but do you seriously compare the average income in China vs USA?
                              Do you even realize that goods in China are much cheaper than in USA?
                              So an average American is not 7.5x(90,000/12,000) richer than an average Chinese.

                                • ?
                                • Anonymous
                                • mAW
                                • 09 Jan 2025

                                Welcome to capitalism (everyone does what they want)...

                                  annabethchase, 09 Jan 2025the reason why there are rules that every foreign company n... moreSo protecting small businesses in Indonesia requires daddy government to get $1 billion worth of investment? I'm sorry but you've been sold a lie here, because what this likely is all about is corruption. They're probably forcing Apple to specifically invest in places that will get the friends of those in power the most money.

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                                    • Anonymous X
                                    • Kx4
                                    • 09 Jan 2025

                                    Anonymous, 09 Jan 2025I dont know what is wrong with the Indonesian government. I... moreThis is about how certain amount of local content of a phone mentioned in regulation.
                                    Not only for Apple, but all brands.
                                    You should think that a republic government consists of several different body. And regulations are product from Legislative body.
                                    And this news about how Executive body execute the regulation!

                                      I told you all right after the band this country would get greedy when the 1 at news broke out n that they'll try to milk Apple!!

                                      ITOLD U ALL!

                                      This is going to back fire on Indonesian government watch!

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                                        • Anonymous
                                        • g3Z
                                        • 09 Jan 2025

                                        Anonymous, 09 Jan 2025I dont know what is wrong with the Indonesian government. I... moreThe reason why Indonesia bans Iphone because they're not obeying the rules. meanwhile other brand like Xiaomi, Samsung, Vivo, Oppo, and other android company even Asus, obey the TKDN Rules by making factory in Indonesia. But apple didn't want to, and they have to invest way more higher than android phones due they don't want to make factory here. Perhaps if they're making factory, it's way cheaper than invest