Protectionist moves like iPhone 16 ban could help Indonesia gain investments, but risk backfiring: Analysts

Overcome LOCAL BUSINESSES ‘ UNDERLYING PROBLEMS, EXPERTS SAY

In recent years, Indonesia has seen a sharp decrease in its middle-class people from the effects of the COVID-19 crisis, which left some businesses and factories shuttered. &nbsp,

According to experts, Mr. Prabowo has promised to build 19 million jobs, and the best way to do that is by attracting more foreign investment to revive its lagging manufacturing industry. &nbsp,

According to experts, the best course of action is to press companies to participate by putting up tariffs and trade bans.

ByteDance reportedly started cutting about 450 work at its Indonesian e-commerce shoulder starting in June after combining its TikTok Shop and Tokopedia. The decline makes up about 9 per share of the leg people, Bloomberg reported.

” To bring purchase, policy persistence is vital. According to Mr. Faisal of CORE, unfair treatment should not be used against both domestic and foreign investors regardless of the government’s coverage. &nbsp,

By creating infrastructure like ships and streets, he said, Indonesia needs to train its workforce, eliminate bureaucracy, and lower the cost of shipping goods across the great island.

It needs to address the core issues that prevent local goods from competing with cheap imported products and safeguard Indonesia’s MSMEs, who make up 97 % of the country’s gross domestic product and use 97 percent of the workplace. &nbsp,

According to Mr. Bhima of CELIOS,” the issues ( faced by ) SME business actors in Indonesia are not only opposition with imported goods but also large lending rates, a relative skill gap for SME people, low quality control, and weak shipping prices.” &nbsp,

” Rather than carrying out baseless protectionism, the government should solve ( these ) fundamental problems”.

High tech costs and limited economic support, according to the Asian Development Bank, have created a challenge for Indonesia’s small business operators. &nbsp,

There are options for Indonesia, according to Dr. Siwage from the ISEAS-Yusof Ishak Institute in adapting to the experiences of a global online marketplace where customers can purchase goods at competitive prices from overseas.

Dr. Siwage cited the success of native e-commerce systems Tokopedia and Bukalapak, both of which are now regarded as “unicorns” – start-ups valued at over US$ 1 billion. He said the nation could make a better environment for more nearby start-ups to develop. &nbsp,

“( Indonesia ) should design policies and incentives for foreign investors to collaborate with local investors”, he said, noting that Tokopedia’s merger with TikTok Shop could be a business model for other companies. &nbsp,

SOME CONSUMERS BURNT BY phone 16 Swindlers

Many people are currently looking for the products on the black market or abroad, which could result in millions of dollars in sales tax in Indonesia as a result of the restrictions on the phone 16 and Google Pixel telephones. &nbsp,

Indian economy ministry official Febri Hendri said that as of final quarter, 9, 000 phone 16 products have entered Indonesia. &nbsp,

The devices were purchased elsewhere, and they are currently being used solely by individuals. Mr. Febri stated that his office will work to ensure that the phones wo n’t be resold and will be sold on the Indonesian market. &nbsp,

The cheapest iPhone 16 is priced at about S$ 1, 299 ( US$ 994 ) in Singapore, according to Apple. If Indonesian customers want to buy the phone into their nation, they will have to pay an additional US$ 135 in import duties.

Soon after the restrictions on October 25, Indonesian e-commerce sites were flooded with customers claiming to be selling the new phone. &nbsp,

Mr. Febri claimed that the government had requested that these sites stop these offers, and many of them have accepted. &nbsp,

We advise consumers to avoid purchasing an iPhone 16 from illegal online retailers and marketplaces. We will act on any details regarding the sale and purchase of the phone 16,” Mr. Febri said in a statement on November 1. &nbsp,