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Indonesia iPhone Ban: Apple Proposes $10M Manufacturing Investment

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Apple has proposed investing nearly $10 million in Indonesian manufacturing operations in an effort to lift the country's recent ban on iPhone 16 sales, according to sources familiar with the matter (via South China Morning Post).

iPhone-16.jpg

The investment would establish a factory in Bandung, near Jakarta, where Apple would partner with its suppliers to produce accessories and components for Apple devices. The proposal has been submitted to Indonesia's Ministry of Industry for review.

The manufacturing investment comes in response to Indonesia blocking iPhone 16 sales last month, after it was determined that Apple's local unit failed to meet the country's requirement for 40% domestic content in smartphones. The ban is part of broader protectionist policies implemented under new President Prabowo Subianto's administration, which has also restricted sales of Google's Pixel phones for similar reasons.

Indonesia represents a significant market for Apple, with the country's population of 280 million operating some 354 million active mobile phones. Apple has established four developer academies in Indonesia to train students and engineers, but the country's officials have pressed for more substantial manufacturing investments.

The proposed $10 million facility would mark Apple's first manufacturing presence in Indonesia, potentially helping the company comply with local content requirements. The Ministry of Industry is currently reviewing the proposal and is expected to make a decision soon.

About 9,000 iPhone 16 units have entered Indonesia through personal imports, but these devices are restricted to personal use and cannot be sold commercially under the current ban.

Article Link: Indonesia iPhone Ban: Apple Proposes $10M Manufacturing Investment
 
Article Link
https://www.macrumors.com/2024/11/05/indonesia-iphone-ban-apple-10m-investment/
How absurd the world stage is becoming, with the EU constantly henpecking Apple over their own software & hardware integration, and now INDONESIA basically saying no one can sell phones to their citizens if they aren't 40% "domestic content", whatever that means. This blatant extortion serves only to prop up the governments of these areas and actually creates worse conditions for their citizens. It's time the NWO model is put in check, the state's function is to build infrastructure and enforce local criminal law, not extort foreign businesses. I'm not sorry that there are now technology corporations with more power than the governments of the world, but as long as those companies empower the people that is how it should be.
 
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karnac said:
How absurd the world stage is becoming, with the EU constantly henpecking Apple over their own software & hardware integration, and now INDONESIA basically saying no one can sell phones to their citizens if they aren't 40% "domestic content", whatever that means. This blatant extortion serves only to prop up the governments of these areas and actually creates worse conditions for their citizens. It's time the NWO model is put in check, the state's function is to build infrastructure and enforce local criminal law, not extort foreign businesses. I'm not sorry that there are now technology corporations with more power than the governments of the world, but as long as those companies empower the people that is how it should be.
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I would advise caution in this line of thinking, I think any one group or company having too much power always results in a bad situation eventually.
 
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karnac said:
How absurd the world stage is becoming, with the EU constantly henpecking Apple over their own software & hardware integration, and now INDONESIA basically saying no one can sell phones to their citizens if they aren't 40% "domestic content", whatever that means. This blatant extortion serves only to prop up the governments of these areas and actually creates worse conditions for their citizens. It's time the NWO model is put in check, the state's function is to build infrastructure and enforce local criminal law, not extort foreign businesses. I'm not sorry that there are now technology corporations with more power than the governments of the world, but as long as those companies empower the people that is how it should be.
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The state’s primary function is the security and protection of its citizens.
 
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Total Respray said:
The state’s primary function is the security and protection of its citizens.
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That's your philosophy or the philosophy you agree with that's norm in your country. People from the other side of the world may not always agree with you or they can have totally different idea of what a government can or cannot do and turned it into a norm for them.

Every country is entitled to decide what laws they have and how they act with local and foreign businesses. If you were Apple, the only option for you would be either suck it up and do what they tell you or leave business entirely.

(Note: I am not Indonesian)
 
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When are we. the consumers. getting paid to keep using Apple products.
 
GuilleA said:
Sounds like a bribe
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Yes, kinda, except not at all.
It's the government that's publicly deciding and no money goes (at least directly) to anybody involved in the choice. It may be corrupt in some way but... no more than the rest of their protectionist policies.
Plus, they're compensating with money and local jobs for not complying with a law that protects local economy and jobs. How is that immoral?
 
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karnac said:
How absurd the world stage is becoming, with the EU constantly henpecking Apple over their own software & hardware integration, and now INDONESIA basically saying no one can sell phones to their citizens if they aren't 40% "domestic content", whatever that means. This blatant extortion serves only to prop up the governments of these areas and actually creates worse conditions for their citizens. It's time the NWO model is put in check, the state's function is to build infrastructure and enforce local criminal law, not extort foreign businesses. I'm not sorry that there are now technology corporations with more power than the governments of the world, but as long as those companies empower the people that is how it should be.
Click to expand...
Damn you 100% tax on Chinese EVs, guess this not blatant extortion is empowering Americans to pay more for worse products
 
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karnac said:
How absurd the world stage is becoming, with the EU constantly henpecking Apple over their own software & hardware integration, and now INDONESIA basically saying no one can sell phones to their citizens if they aren't 40% "domestic content", whatever that means. This blatant extortion serves only to prop up the governments of these areas and actually creates worse conditions for their citizens. It's time the NWO model is put in check, the state's function is to build infrastructure and enforce local criminal law, not extort foreign businesses. I'm not sorry that there are now technology corporations with more power than the governments of the world, but as long as those companies empower the people that is how it should be.
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"Unregulated global capitalism is best for all"
Yeah, I'm gonna need a source for that.
 
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Redwan7 said:
That's your philosophy or the philosophy you agree with that's norm in your country. People from the other side of the world may not always agree with you or they can have totally different idea of what a government can or cannot do and turned it into a norm for them.

Every country is entitled to decide what laws they have and how they act with local and foreign businesses. If you were Apple, the only option for you would be either suck it up and do what they tell you or leave business entirely.

(Note: I am not Indonesian)
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Economics, infrastructure, social welfare and public policy are also roles for the state. No argument. But each are subservient to safety and security.
 
Xiao_Xi said:
While I understand that many MacRumors users are Apple investors, I find it hard to understand how people can be against a government trying to bring investment and jobs to their country.
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I'm an Apple customer (not a direct investor). I see where you are coming from; as an American, I am proud to buy Made in USA products where possible. But imagine for a minute if every country had similar domestic content laws in place. Apple would need to have manufacturing facilities in every country they sell phones in...? That would be completely unfeasible, and consumers in most countries would simply have to resort to black markets to buy iPhones...? Is that what we want?
 
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Xiao_Xi said:
While I understand that many MacRumors users are Apple investors, I find it hard to understand how people can be against a government trying to bring investment and jobs to their country.
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Because if 150+ countries started doing this for all kinds of goods, trade would suffer, things would become more expensive.
 
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How absurd was that political whores all around the world let corporations do whatever they want with little benefit to people. Those times comes to its end. No technology can make human life better only easier and more comfortable.
 
cicalinarrot said:
Yes, kinda, except not at all.
It's the government that's publicly deciding and no money goes (at least directly) to anybody involved in the choice. It may be corrupt in some way but... no more than the rest of their protectionist policies.
Plus, they're compensating with money and local jobs for not complying with a law that protects local economy and jobs. How is that immoral?
Click to expand...
A bribe is "Money or favor given or promised in order to influence the judgment or conduct of a person in a position of trust".

Seems perfectly reasonable to describe this as a bribe. Bribes do not have to be done in secret and are certainly not illegal (except in relatively rare situations). The politicians who are being influenced are going to benefit from this. Possibly through financial back channels such as local land investments and/or other business interests. But even if there is no financial gain, there will be "political capital" banked from this.

In my view, this again comes down to the government making a choice for its citizens that they have no apparent interest in making for themselves. If a plurality of Indonesian consumers cared about this, then no legislation would be necessary.

It is important to realize that this regulation does at least two things for sure. It denies the ability for Apple to sale iPhones in Indonesia (from the position of an Indonesian legislator, who cares if Apple is negatively impacted). And it denies people in Indonesia the ability to buy iPhones locally. Obviously this won't matter to politicians or people with power and wealth, cause they will do what they always do, work around the legislation. In this case, if they want an iPhone they will buy it abroad or have someone else do it for them. So as is the normal M.O. of governance, the cost will be paid by those who cannot afford to work around the legislation. It is those specific consumers that the Indonesian government is using as leverage against Apple. In this case, it appears to have worked, but if it didn't, it is no big deal, because the people that matter to the politicians were not negatively impacted at all (they may have been inconvenienced at worst).

This is obviously a bleak and simplified view of governance. However, it is supported by real world observations.
 
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