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A $44 million investment pledge in an Indonesian R&D center has paved the way for Apple to be able to sell the iPhone 7 in the country, according to one of the country's senior government officials.

A director-general overseeing electronics told Reuters that as a result of the three-year investment commitment, Apple had received a "local content certification" last month which would allow it to sell iPhones throughout Indonesia.

jakarta-indonesia-800x312.jpg
Jakarta, Indonesia
"Apple has committed around $44 million to invest in R&D over three years," I Gusti Putu Suryawirawan said in a text message. "Therefore, they can distribute devices priced 6 million rupiah ($448) and above. That means all iPhones can be distributed."
Starting from 2017, Indonesia will introduce a telecommunications policy which stipulates that all 4G handsets sold in the country must have "local content" of at least 30 percent, whether that be in terms of hardware, software or an investment commitment.

Asked by Reuters to comment on the investment figure, Apple merely pointed to an announcement last year that it had committed to building an iOS App Development Center in the country.

Such an R&D investment apparently fulfills the government's "local content" requirement and will help Apple make significant inroads in the Indonesian market, which is home to 250 million people and a young, tech-savvy demographic that Apple has yet to crack. In 2011, Apple was forced to shut down its online store in Indonesia because of shipping issues, and had to re-apply for permission to launch it again as part of its application to open its first retail store in the country.

According to research firm IDC, Samsung commanded a 26 percent share of Indonesia's smartphone market by sales volume in the second quarter of 2016, trailing Oppo with 19 percent. Both own factories in the country.

Article Link: Apple Allowed to Sell iPhone 7 in Indonesia After $44 Million R&D Investment Pledge
 

Mac Fly (film)

macrumors 68000
Feb 12, 2006
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I was so ignorant of the population of Indonesia being 255M—more than Brazil (wtf). If someone told me they were a nation of 9M I would have believed them.
 
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c0ppo

macrumors 68000
Feb 11, 2013
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I was so ignorant of the population of Indonesia being 255M—more than Brazil (wtf). If someone told me they were a nation of 9M I would have believed them.

Read a bit more, since Indonesia is largest (population wise) muslim country in the world ;)
 

GrumpyMom

macrumors G4
Sep 11, 2014
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Some of my hopes for Apple's future hinge on these being real investments in real R&D. But if these "R&D investments" are just elaborate bribes to have shell facilities with people doing basic work that won't produce real innovation, I'm afraid the parade of mediocrity will continue.

I am hoping that somewhere in one of these new facilities in one of these growing economies Apple has invested in, there is the next young and hungry genius chomping at the bit to take Apple out of the certain level of stagnation we've been complaining about on this forum. At the very least, I hope they are able to come up with innovations that benefit their local markets.
 
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M2M

macrumors 6502
Jan 12, 2009
348
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Not surprised Apple has to pay bribes there. Indonesia is quite a corrupt country (http://www.transparency.org/country#IDN) - just compare it to the UK or US.
Having some friends who actually are from Indonesia and who has to pay a couple of $$ at the border to enter their own country without a hassle tells a story too. Also my ex-company has an office their. To keep the business running presents and dinners with local gov. officials was / is the norm.
 

now i see it

macrumors 604
Jan 2, 2002
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Ok, now I see it. All these Apple "R&D" centers popping up all around the world are in reality just another time honored business deal of - you gotta pay to play.
 
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konqueror4u

macrumors regular
May 18, 2016
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Programmers Heaven
Apple is not allowed to sell their products as per the law. They can sell iPhone 7 for now but to sell iPhone 7s they will have to fulfill their commitment. Law cannot be compared to bribery. Why other countries should allow access to their markets with out investing in their country or people? Companies have to respect the law of land. We might see apple products designed in Indonesia soon. If a global economic power like US is turning protectionist it is not fair to find fault with other countries.
 

Shahho

macrumors newbie
Mar 29, 2016
7
2
Apple is not allowed to sell their products as per the law. They can sell iPhone 7 for now but to sell iPhone 7s they will have to fulfill their commitment. Law cannot be compared to bribery. Why other countries should allow access to their markets with out investing in their country or people? Companies have to respect the law of land. We might see apple products designed in Indonesia soon. If a global economic power like US is turning protectionist it is not fair to find fault with other countries.

Indonesia is a corrupt country. Anyone who does business there is essentially the govt's b*tch. Read up.
 
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jimbobb24

macrumors 68000
Jun 6, 2005
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Apple is not allowed to sell their products as per the law. They can sell iPhone 7 for now but to sell iPhone 7s they will have to fulfill their commitment. Law cannot be compared to bribery. Why other countries should allow access to their markets with out investing in their country or people? Companies have to respect the law of land. We might see apple products designed in Indonesia soon. If a global economic power like US is turning protectionist it is not fair to find fault with other countries.

Because their people want to buy stuff? Who cares what my "governement" wants, why do they decide what I can buy? Yes, Apple must honor the law. The question is why are laws designed to enrich politicians and limit citizens choices.
 

konqueror4u

macrumors regular
May 18, 2016
119
77
Programmers Heaven
Because their people want to buy stuff? Who cares what my "governement" wants, why do they decide what I can buy? Yes, Apple must honor the law. The question is why are laws designed to enrich politicians and limit citizens choices.
It is about generating employment to their people. In Indonesia there is a law called local content requirement. So if Apple has to sell their iphones they need to meet requirement.

http://jakartaglobe.id/business/apple-sell-iphone-7-indonesia-clearing-local-content-requirement/
[doublepost=1481932203][/doublepost]
Indonesia is a corrupt country. Anyone who does business there is essentially the govt's b*tch. Read up.
You may be right. In this scenario it is about generating employment to their people. In Indonesia there is a law called local content requirement. So if Apple has to sell their iphones they need to meet requirement.

http://jakartaglobe.id/business/apple-sell-iphone-7-indonesia-clearing-local-content-requirement/
[doublepost=1481933948][/doublepost]
Man, we're all missing out on the freebies!

If first-world Apple consumers had half a brain, we'd form a collective to make Apple invest in our own cities, before we buy any more of their products.

:p

Lol!!!

I think the best solution is to manufacture the stuff using 100% local content of that specific country and sell it in the same country.

By following Standardized manufacturing process quality levels of the product will be consistent across the globe.

Problem is products will be a lot cheaper in third world countries compared to first world countries due to higher labor costs. Cost of producing a product using 100% local content in a first world country will be 300-400% more expensive in majority of the cases compared to a third world country. so if a person from third world country buys a product for $100 same product will be available for $400 in the first world country.

Funny!!! I think protectionism can lead to this situation...
 
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Kajje

macrumors 6502a
Dec 6, 2012
722
958
Asia
Apple is not allowed to sell their products as per the law. Law cannot be compared to bribery.
I bet my head you have yet to meet an Indonesian government official. Laws over there are made by, and made for the so-called "Indonesian Elite". There are bribes to be paid, the nephew will sell the land plot, the research building will be built by a lawmaker's brother who happens to own a contractor, his sister can help with facilitating the permits.

Being good for the people, is just a small annoying side effect and will be reversed whenever possible.
 

niun

macrumors 6502a
Mar 31, 2015
686
1,012
Some of my hopes for Apple's future hinge on these being real investments in real R&D. But if these "R&D investments" are just elaborate bribes to have shell facilities with people doing basic work that won't produce real innovation, I'm afraid the parade of mediocrity will continue.

I am hoping that somewhere in one of these new facilities in one of these growing economies Apple has invested in, there is the next young and hungry genius chomping at the bit to take Apple out of the certain level of stagnation we've been complaining about on this forum. At the very least, I hope they are able to come up with innovations that benefit their local markets.

Apple
Designed in Indonesia.
Made in China.
Profit in Ireland (exact location unknown).
 
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furi0usbee

macrumors 68000
Jul 11, 2008
1,790
1,381
Apple
Designed in Indonesia.
Made in China.
Profit in Ireland (exact location unknown).

So TRUE!!!!!!!!! How does $44mil in R&D investment equate to 30% of "local content." Apple only cares about making $$$ at this point anyway. I don't really care one way or the other.
 

I7guy

macrumors Penryn
Nov 30, 2013
27,599
15,844
Gotta be in it to win it
Some of my hopes for Apple's future hinge on these being real investments in real R&D. But if these "R&D investments" are just elaborate bribes to have shell facilities with people doing basic work that won't produce real innovation, I'm afraid the parade of mediocrity will continue.

I am hoping that somewhere in one of these new facilities in one of these growing economies Apple has invested in, there is the next young and hungry genius chomping at the bit to take Apple out of the certain level of stagnation we've been complaining about on this forum. At the very least, I hope they are able to come up with innovations that benefit their local markets.
That's not the way it works though. Innovation centers in muilti national companies don't benefit the local product directly.

i don't think Apple is stagnant they produce products I want. Apple Old timers Have a differing opinion.
[doublepost=1482134739][/doublepost]
So TRUE!!!!!!!!! How does $44mil in R&D investment equate to 30% of "local content." Apple only cares about making $$$ at this point anyway. I don't really care one way or the other.
Well behind providing a service every company should care about making $$$.
 

GrumpyMom

macrumors G4
Sep 11, 2014
10,274
15,202
That's not the way it works though. Innovation centers in muilti national companies don't benefit the local product directly.

i don't think Apple is stagnant they produce products I want. Apple Old timers Have a differing opinion.
[doublepost=1482134739][/doublepost]
Well behind providing a service every company should care about making $$$.
Mac pros. That's definitely stagnated.
 
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