Commentary: Indonesia’s iPhone 16 ban sends the wrong message to foreign investors
HEADACHES AND Barriers
Cook and his team might have experienced the exact difficulties that other businesses are facing. The US State Department’s 2024 Investment Climate statement on Indonesia cites “restrictive regulations, legal and regulatory confusion, economic nationalism, business isolationism, and conferred interests” as the primary headwinds complicating its foreign funding view. Some of these obstacles may be worked on by politicians.
Indonesia’s market is also largely driven by supplies. Some successful initiatives have succeeded in bringing electric-vehicle power plants to the nation thanks to laws that require foreign companies to obtain raw materials to carry out some of the processing directly. However, the World Trade Organization has likewise condemned them.  ,
Some of the protectionist policies have n’t had the same level of uncertainty and additional headaches that have n’t paid off more broadly. Manufacturing as a percentage of Indonesia’s GDP has ticked down during the past president’s time in office.
Apple, for its part, may find a way to work this out.  ,
Even though it currently controls a sizable portion of the Indonesian smartphone business, it still has a direct and 40 % of the premium market, which represents devices over US$ 600. And the top end had 70 per cent year-on-year progress in supplies last quarter, driven largely by Samsung and Chinese phone manufacturers.  ,
Progress in Indonesia and another emerging markets, according to Apple’s chief financial officer Luca Maestri, was cited as a positive development in the wake of earlier this year’s income difficulties in China.  ,
Apple has noticed some flaws in this country as a result of the rise of local laptop manufacturers. However, these rivals even rule Indonesia: Four of the top five device manufacturers are Chinese.  ,
In general, Chinese cash has poured in while US companies have slowed their foot on foreign opportunities in the Southeast Asian peninsula. It was more than twice as high as it was last time in comparison to the US.  ,