Indonesia's protectionist policies aimed at attracting tech investment may backfire, economists warn

Indonesia’s efforts to attract capital from tech companies like Apple through local investment and manufacturing requirements may not yield long-term gains, economists caution. With long-standing local content policies preventing Apple from selling its newest iPhone model in the country, Indonesia plans to increase local content requirements for smartphone investments after rejecting a $100 million proposal from Apple and asking for a $1 billion investment in cell phone component production. While the aim is to protect local industries and create a value-added supply chain, economists argue that the policy is misguided and may not address the deeper reasons why Indonesia struggles to attract tech supply chains.

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