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Apple Store to make Indonesian return after two-year absence

post #1 of 7
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Apple will spend between $2 million and $3 million to reopen Online Apple Store sales, as well as build a brick and mortar Apple Store, in Indonesia after halting operations in the country over shipping issues in late 2010.

Apple Indonesia
Apple's Indonesian webpage will be getting a makeover soon when the company restarts online sales in the region.


Apple's intentions were revealed in a document filed with the Indonesia Investment Coordinating Board (BKPM) asking for approval to sell its products in the country, reports NZWeek (via The Next Web). In a statement on Tuesday, BKPM Chairman Chatib Basri said the board had given Apple official approval to begin online sales ahead of constructing an Apple Store in Jakarta.

The $2 million to $3 million dollar investment estimate comes from Azhar Lubis, deputy chariman of BKPM, who said the money will go to the planned brick and mortar location in Indonesia's capital city. Further expenditures are expected to be spent on bolstering the company's supply chain and distribution channels in the region.

While Indonesia has had a dedicated Apple website, products are not available for direct purchase and listings offer only hardware specifications and suggested pricing information. As of this writing, customers looking to buy a new Mac or iPhone still need to visit an Authorized Apple Reseller. It has been reported that Apple did operate an online storefront from 2008 to 2010, but ultimately closed the service due to unspecified shipping issues.

Official opening dates for the Online Apple Store or the Jakarta location have yet to be announced.

Apple most recently opened the digital doors to its iTunes Music Store in Indonesia last month as part of a 56-country rollout of the ubiquitous online media outlet.
post #2 of 7
They need to do it quick because now Indonesia is infected by Samsung.
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post #3 of 7
"unspecified shipping issues."
My wife is Indonesian. She sent some herbal medicine from the US to her father in Bogor, South of Jakarta. Six bottles were sent, five bottles made it. Items disappear in Indonesian customs. A major company such as Apple had to pull out.

There is certainly rule of law in Indonesia. The terrorists that set off bombs in Bali were found and punishment was quick. Much faster than the United States. But small items missing in shipment? Nothing will ever be done. Imagine paying 20% more for Apple products, taking a week longer to get them, but have a certain percentage never make it, and there is no recourse.

Indonesia heavily taxes imports. Because of that tax, Apple products are much more expensive there than in the US, despite the lower cost of living. Opening a store in the country will let Apple pay the duty on the wholesale cost instead of the retail value, lowering the price to customers. They could then ship within the country from the store, avoiding customs.
post #4 of 7
Quote:
Originally Posted by fuwafuwa View Post

They need to do it quick because now Indonesia is infected by Samsung.

That might flu over ¡
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post #5 of 7
It seems strange that they need to ask the government before opening a store. I've heard of governments reviewing potentially strategic investments, such as foreigners buying a huge mining operation, or attempting to buy land near a military base, but just opening a store? What have they got against commerce, lifeblood of human civilisation.
post #6 of 7
Quote:
Originally Posted by fuwafuwa View Post

They need to do it quick because now Indonesia is infected by Samsung.

IIRC, Blackberry's are the "winning" phone in Indoesia.
post #7 of 7

Import tax is not necessarily the problem. 4 - 5 years ago apple's products prices in Indonesia was considerably lower compared to singapore, especially when you get it from a non-premium store. Only when it's getting more popularity here, the prices became a bit 'chaotic'. Retailers are playing with prices like crazy, setting them as they like. And you can go from one store to another and find price differences between USD 30-100 on exactly the same product.

 

The challenge will be more on controlling prices and have their uniformity across existing 'authorised' stores.


Edited by andekaputra - 1/23/13 at 1:08pm
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