Indonesia Permits Apple to Sell iPhones in the Country on Certain Conditions

By Vishal Goel, | December 19, 2016

Indonesia is a promising smartphone market where Apple is currently leading some of its rivals. (Pixabay)

Indonesia is a promising smartphone market where Apple is currently leading some of its rivals. (Pixabay)

Indonesia has permitted Apple to sell its latest iPhone 7 smartphones in the country after the company made a commitment to invest about $44 million in an Indonesian research and development center over the next three years, according to a senior government official of the Southeast Asian country.

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Indonesia is a promising smartphone market where Apple is currently leading some of its rivals. All 4G Apple handsets sold in the country will have at least 30 percent local content, according to a telecommunication policy introduced by the country that will take effect from January 2017. 

According to I Gusti Putu Suryawirawan, director-general for metal, machines, transport equipment and electronics at the Indonesian industry ministry, Apple received a "local content certification" in November after making the commitment which allows it to distribute devices priced six million rupiahs ($448) and above.

"That means all iPhones can be distributed," Suryawirawan wrote in a text message. However,  Apple declined to disclose the investment figure but confirmed that it had made a commitment to build an iOS App Development Center in Indonesia last year.

Indonesia, a country of 250 million people, has a young, internet-savvy demographic and is among the world's biggest users of social media. South Korea's Samsung and China's OPPO smartphone companies have factories in the country. In the second quarter of this year, Samsung led with a 26 percent share of Indonesia's smartphone market by sales volume followed by OPPO with 19 percent,  according to research firm IDC.

In 2011, Apple was forced to shut down its online store in Indonesia because of shipping issues, and had to reapply for permission to launch it again as part of its application to open its first retail store in the country.

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