The government of Indonesia has
approved an Apple proposal to build a research and development facility in the country, a move that will allow Apple to comply with a government rule that at least 30 percent of components in foreign-made smartphones must be produced within the country. The government allows companies to interpret "components" as either hardware, software, or development, allowing Apple a way to obey the law without having to alter the iPhones.
Indonesia is attempting to strengthen its manufacturing base due to its high reliance on imports, and won approval of the new rule from the countries it chiefly imports from, including the US government. The country's Minister of Communications and Technology, known by the single name "Rudiantara," worked with Apple on a plan for compliance with the new edict during a visit to California last month. The rule actually takes effect in 2017, giving Apple time to set up R&D facilities in the country.
Apple retailer in Indonesia
The deal is likely to work out well for Apple, which is constantly expanding its R&D teams in various countries. Indonesia imports some $5 billion US worth of smartphones each year, making it a rich market in the region for Apple. The iPhone maker has also set up various sorts of satellite facilties in England, Japan, Brazil, and Israel, among other places outside its usual California-area campuses. Apple CEO Tim Cook has previously said that diversity in its workforce, such as using locally-sourced tech workers in foreign countries, brings increased cultural perspective and thinking that kickstarts innovation.
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