Indonesia Says Apple's $100 Million Investment Proposal Inadequate (reuters.com) 25
Indonesia rejected Apple's $100 million investment proposal to build an accessory and component plant, stating it was insufficient to lift the current ban on iPhone 16 sales in the country. Indonesia banned sales of Apple's iPhone 16 last month after it failed to meet requirements that smartphones sold domestically should comprise at least 40% locally-made parts. Reuters reports: "We have done an assessment and this (proposal) has not met principles of fairness," Industry Minister Agus Gumiwang Kartasasmita told a press conference, comparing the proposal to Apple's bigger investments in neighboring Vietnam and Thailand. Apple has no manufacturing facilities in Indonesia, but has since 2018 set up application-developer academies, which Jakarta considers a way for the company to meet local content requirement for the sale of older iPhone models. Agus said Apple had an outstanding investment commitment of $10 million it should have carried out before 2023. He also wanted Apple to commit to new investment until 2026.
Inadequate? (Score:5, Interesting)
Inadequate sounds so harsh.
Indonesia then said "Our shake-downs will continue until investment improves!"
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Xiaomi and Samsung have no problems building factories to meet the investment requirements to sell smartphones there.
The wrong approach. (Score:4, Insightful)
Then let the black market allure of these forbidden devices fulfill demand. The governemntal agents will get there cut as well, since they're probably being bribed to allow the sales, or selling themselves.
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Re: The wrong approach. (Score:2)
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This is not insightful, it is just plain stupid and insulting.
Every developing country is corrupt?
Indonesia is one of the bigger players in south east asia.
All countries in SEA are more or less "developing countries". Regardless what you sell there: the markets will explode in the next decades. Not setting shop up there is just plain stupid by western companies.
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Buying iPhones on the black market won't get your phone's IMEI on the whitelist to get cell service, you'll just have an expensive iPod touch.
Buy America vs Buy American (Score:2)
Build America, Buy America Act (BABAA) is the most expansive statute that require multiple U.S. federal agencies to apply content procurement preferences for goods, products, and materials made in the U.S.
Under BABAA, items purchased for use in a covered infrastructure project must meet the following requirements: (1) Iron and steel: All manufacturing processes, from the initial melting stage through the application of coatings, occurred in the U.S. (2) Manufactured products: All products are manufactured in the U.S., and the cost of its components that are mined, produced, or manufactured in the U.S. is greater than 55 percent of the total cost of all components. (3) Construction materials: All manufacturing processes occurred in the U.S.
55% to 100% “made in the U.S” requirements
The Buy American Act is a statute that creates a national preference for the U.S. federal government’s procurement of domestic construction materials.
For purchases over $10,000 USD for construction projects, infrastructure investments, and procurement of goods and services. Under FAR 25.003, for products that are not iron and steel products, a product qualifies as a domestic end product if the item is manufactured in the U.S. and more than 60 percent of the cost of all the component parts is also mined, produced, or manufactured in the U.S. The standard for domestic end products increased to 60 percent on October 25, 2022, further increases to 65 percent in calendar year 2024, and 75 percent in calendar year 2029
65% “made in the U.S” requirements
Protectionism for me, not for thee, eh?
Re:Buy America vs Buy American (Score:4, Informative)
This is just a friendly reminder to that the USA has no less than TWO suites of laws that foreign companies need to navigate if they want to sell stuff in America.
Protectionism for me, not for thee, eh?
The acts you refer to are for Federal government procurement, and do not apply to private purchases; so your argument is a bit disingenuous. Does the US have protectionist policies, in place, certainly, often the form of tariffs.
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Not to mention an ever growing suite of tariffs, a president-elect who promised to add across the board tariffs of between 20 to 60%, and a whole bunch of sanctions and import bans against, among other things, foreign smartphone manufacturers.
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What the hell does that have to do with Apple not wanting to follow some third world countries laws?
The US government has nothing to do with this issue this isn't even a good straw man argument it's rather childish in concept.
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Indonesia is in Sout East Asii.
It is not a third world country. Strictly speaking: it never was.
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No, not for thee, because they are brown, they are Muslim - and they smell!
US should do the same (Score:2)
The US should tell Apple to stop fucking around in chinese sweatshops and start manufacturing their devices in the US. They promised this during Trump's last term but I guess they thought they were done when they got their pal Biden elected. Look who is back suckers!
Because of tariffs (similar to this indonesian law in effect) soon chinese car manufacturers will produce big parts of a lot of cars in the US. Yet iPhones are still made by uyghurs in forced labor camps.
Re: US should do the same (Score:2)
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Because of tariffs (similar to this indonesian law in effect) soon chinese car manufacturers will produce big parts of a lot of cars in the US.
Unlikely. They either will just accept the tariffs or don't sell. They consider nuisances like this: your problem, not theirs. Or if the matter is only the price and competition: they increase the price and swallow the extra profit.
If Americans do nor want a < 20k Chinese Luxury Vehicle ... then they sell it to Thailand, Malaysia, Indonesia, Philippines ... Laos,
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Quid pro quo (Score:1)
Fair enough. Apple will not get to sell iPhone 16s in India.
Also India will not be allowed to make telephone calls or send emails to the rest of the world.
Can't wait to hear the sounds of those callcenter scripts being flushed down Indian toile...
Oh wait, they don't use toilets. Well you know, crap in the street you walk on.
India - there's a reason you're a third world country. But hey, tell Apple how to run a business. Because despite nobody liking them, we like spam and your callcenter crap even less.
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Indonesia. Thank you autocorrect.
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