American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Will Apple’s $10m investment unlock Indonesia’s iPhone market?

by admin November 5, 2024
November 5, 2024
Will Apple’s $10m investment unlock Indonesia’s iPhone market?

Apple Inc. has put forward a nearly $10 million investment proposal to expand its manufacturing presence in Indonesia, aiming to overturn a ban on sales of its latest iPhone.

Sources familiar with the matter told Bloomberg that the $10 million plan involves collaborating with Apple’s existing network of suppliers to establish a factory in Bandung, southeast of Jakarta.

This facility would produce accessories and components for Apple devices.

Navigating regulatory hurdles

This proposal comes in response to the Indonesian Ministry of Industry’s decision last month to block a sales permit for the iPhone 16.

The ministry cited Apple’s failure to meet a 40% domestic content requirement for smartphones and tablets.

The ministry is currently reviewing Apple’s proposal, which remains subject to change, and a decision is expected soon, as per reports.

However, neither Apple nor the Ministry of Industry offered comment on the matter.

iPhone 16 ban: a pattern of protectionism

The iPhone 16 ban underscores the Indonesian government’s increasing pressure on international companies to enhance local manufacturing, reflecting a protectionist stance under President Prabowo Subianto.

Similar measures have affected other tech giants, including Google, whose Pixel phones also face a sales ban due to insufficient local investment.

This approach echoes tactics employed by the previous administration under President Joko Widodo, which last year blocked ByteDance Ltd.’s TikTok, ultimately leading to a $1.5 billion investment by the company in a joint venture with Indonesian e-commerce platform Tokopedia.

Weighing the costs and benefits

Apple currently lacks independent factories in Indonesia, relying instead on local suppliers for components and finished goods, as is common practice for multinational corporations.

The proposed $10 million investment would represent a relatively modest expenditure for Apple to gain broader access to Indonesia’s substantial consumer market of approximately 278 million people, a demographic largely comprised of tech-savvy individuals under 44.

While this investment might be seen as a victory for Indonesia, such assertive tactics risk discouraging other companies from expanding their presence in the country, potentially undermining President Prabowo’s efforts to attract foreign investment and stimulate economic growth.

Shortcomings and inconsistencies

According to the Indonesian government, Apple’s current investment of $95 million (1.5 trillion rupiah) through developer academies falls short of its 1.7 trillion rupiah commitment.

Officials have also pressured e-commerce platforms Tokopedia and TikTok to remove iPhone 16 listings, threatening legal action.

Indonesia’s trade policies have been characterized by inconsistency.

Earlier this year, import restrictions on a wide range of products, from electronics to tires and chemicals, sparked significant backlash from the business community, including companies with established manufacturing operations in the country, such as LG Electronics, which faced difficulties importing essential components.

Despite the government’s emphasis on boosting domestic manufacturing, the sector has struggled, with its contribution to GDP declining from 21.1% in 2014 to 18.7% last year.

The post Will Apple’s $10m investment unlock Indonesia’s iPhone market? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Peloton stock could explode higher by 135% if this happens
next post
Nikola stock analysis: is NKLA a buy after plunging to a record low?

Related Posts

Groupon stock price has become overbought: is it...

June 15, 2025

Uber, IBM, and Bill: why these 3 stocks...

January 28, 2025

Micron stock price forecast ahead of earnings: buy...

December 14, 2024

Don’t freak out about the stock market’s inflation...

February 17, 2024

Glencore-backed Nanshan Aluminum’s stock dips after Hong Kong...

March 25, 2025

RYLD yields 12%, IWM 1.1%: which is the...

October 20, 2024

Tesla asks shareholders to vote again on Musk’s...

April 19, 2024

Nio stock price has crashed: is it safe...

March 31, 2025

Warner Bros. Discovery sues NBA to secure media...

July 29, 2024

Target doubles bonuses for salaried employees as profits...

March 27, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Kraft Heinz plans breakup, weighs $20 billion grocery spin-off: report

      July 13, 2025
    • Trump’s 50% tariff on Brazil imports to brew trouble for Starbucks and Dutch Bros

      July 13, 2025
    • US to announce 30% tariff on EU and Mexico says Trump

      July 13, 2025
    • Why India is rushing to build bigger banks and what’s standing in the way

      July 13, 2025
    • Wall Street braces for weakest earnings season since 2023 amid market highs

      July 13, 2025

    Categories

    • Business (3,358)
    • Investing (2,607)
    • Latest News (2,017)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved