Table of Contents
There is still apparently no movement in the dispute between Apple and the Indonesian government over approval of the iPhone 16 series. According to local media, the country’s Ministry of Economic Affairs expects more money from Apple, particularly for a deeper local supply chain, to reconsider its decision. A tenfold increase in investment in the local economy of the fourth largest country in the world is therefore not enough.
Advertisement
No approval for the new iPhones
For what reasons it is unclear, Apple did not initially invest the full amount in the country as promised by CEO Tim Cook. Ultimately, it was $10 million too little. Economy Minister Agus Gumiwang Kartasasmita reacted sharply and declared the iPhone 16 illegal in his country and did not give the devices an IMEI. “We, the Ministry of Industry, cannot issue these approvals for the iPhone 16 because Apple has not yet realized its commitments,” he said in October.
Apple, which has not yet commented publicly on the incident, reacted belatedly and announced that it would now increase the amount to $100 million. However, that is not enough for the government. As the Antara news agency writes at the weekend, Apple is expected to raise “over 100 million dollars” invest in the country. From the government’s perspective, they want the sum to be larger, a spokesman told the medium.
Carrot and stick
It is particularly about strengthening the local manufacturing sector and ensuring that Indonesia becomes “part of Apple’s global supply chain”. The presence of suppliers ensures more jobs. Indonesia is not yet in a position to produce the semiconductors necessary for Apple. “But if Apple needs them, components could come from local suppliers,” said the spokesman for the Ministry of Economic Affairs. It’s about a “multiplier effect”. Apple is also being invited to conduct research and development in the country – as part of its “Industry 4.0” initiative, which also involves artificial intelligence. There are apparently already plans to produce parts of the AirPods Max – specifically the mesh fabric – in West Java, Indonesia.
The spokesman did not provide any information about possible subsidies – but they are conceivable. Nevertheless, Apple is confronted with a difficult situation: diplomatically, it is thin ice for the company, which is otherwise courted by many governments. It also said on Friday that the Indonesian government would block IMEI numbers of foreign iPhone 16 models once they become operational in the country. In the worst case, this could also affect tourists enter with your new iPhone. At least 11,000 devices are said to have been registered by November 10th. The aim is to prevent the devices from becoming a gray market. Checks at the border are also planned to determine whether a device is really private or intended for sale.
(bsc)
**Considering Indonesia’s push for domestic semiconductor development, how might this standoff influence future investment decisions by global tech companies in Southeast Asia and beyond?**
## World Today News Exclusive Interview: Apple vs Indonesia – The iPhone 16 Standoff
**Welcome to World Today News! Today we’re delving into the ongoing dispute between tech giant Apple and the Indonesian government over the iPhone 16 series. To help us unpack this complex situation, we have two expert guests joining us today:**
* **[Guest 1 Name],** a technology law specialist with expertise in international trade regulations.
* **[Guest 2 Name],** an economist focusing on Southeast Asia and global supply chains.
**Welcome to both of you. Let’s begin!**
**Section 1: The Dispute and its Economic Implication**
* **Host:** [Guest 1], could you shed some light on the legal implications of Indonesia’s stance against Apple? Is blocking IMEI numbers a valid strategy from a legal standpoint? What precedents could this set for future tech disputes?
* **Host:** [Guest 2], Indonesia seems to be demanding more than financial investment from Apple. They’ve talked about strengthening the local manufacturing sector and integrating into the global supply chain. How realistic are these demands? What are the potential benefits and drawbacks for both Apple and Indonesia in fulfilling them?
**Section 2: The Supply Chain Dynamics and Potential Solutions**
* **Host:** [Guest 2], Indonesia is pushing for Apple to establish semiconductor suppliers locally. Is this feasible given the current state of Indonesia’s technology infrastructure? What steps could Indonesia take to attract such investment and develop a sustainable semiconductor ecosystem?
* **Host:** [Guest 1], Apple has reportedly pledged to invest in R&D in Indonesia. How might this benefit both parties? Could this be part of a mutually beneficial compromise to resolve the current deadlock?
**Section 3: The Broader Impact and Future Implications**
* **Host:** [Guest 2], this situation highlights the growing importance of Southeast Asia in the global tech landscape. How might this dispute influence other tech giants looking to establish a presence in the region?
* **Host:** [Guest 1], could this situation have ramifications for international trade agreements and the balance of power between tech companies and nation-states?
**Section 4: Looking Ahead**
* **Host:** Both of you, what are your predictions for the future of this dispute? What outcomes are most probable, and what are the potential consequences for both Apple and Indonesia?
**Host:** Thank you to both of our esteemed guests for sharing their invaluable insights with us today. This is a developing story, and we’ll continue to follow it closely here at World Today News.
