Indonesia, major economic power of ASEAN with its GDP of 1,000 billion dollarsdon't mess around with its regulations. The country has more than 350 million active mobile phones for 270 million inhabitants. A colossal market from which Apple will not be able to benefit immediately.
An investment deemed insufficient by Jakarta
The standoff between Apple and the Indonesian authorities finds its source in the strict rules imposed on foreign manufacturers. Apple's local subsidiary has only invested 1.5 trillion rupees ($95 million) of the 1.7 trillion promised. A sum remains below the expectations of the government which requires a minimum local content of 40% for smartphones marketed on its territory.
Apple's strategy in Indonesia stands out from that adopted in other emerging markets. Instead of setting up a local production unit, the company favored the creation of developer academies. An approach which has clearly not convinced the Indonesian authorities, keen to develop their manufacturing industry.
Despite the official ban, around 9,000 iPhone 16s are already circulating on Indonesian territory. These devices entered the country legally, carried by passengers, crew members or shipped by post. The ministry specifies, however, that These smartphones are reserved for personal use and cannot be sold.
A hard blow for Apple's Asian strategy
This decision comes at a delicate time for Apple. The Californian company is banking heavily on Asian markets, particularly since the rebound in demand in China. Indonesia represents a strategic market with its expanding middle class and growing appetite for high-end technology products such as the iPhone 16.
Negotiations in progress
Discussions continue between Apple and the Indonesian government. The manufacturer will either have to increase its direct investments or review its local production strategy to hope to market the iPhone 16 in the archipelago. A situation that could set a precedent for other emerging markets eager to attract investments from technology giants.
- Indonesia blocks sale of iPhone 16 for failure to meet local investment requirements
- Apple invested 95 million dollars instead of the 108 million expected
- The 9,000 iPhone 16s already present in the country are reserved for personal use
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