November 17, 2024
RUSHIL PATEL
Last Edited:
Nobember 17, 2024
3 Minutes
Hi Everyone!
Welcome to the tenth edition of Phron Weekly! We have hit the double digits! I appreciate all of your following and support. This week's review explores how to create your future and Indonesia's policy surrounding its recent iPhone 16 Ban.
“The best way to predict your future is to create it.” - Peter Drucker
Peter Drucker was a highly influential management consultant, educator, and author known for his work on business strategy and leadership. Often called the “father of modern management,” he contributed to the practical foundations of modern management theory. His books emphasized that businesses should prioritize effectiveness, value creation, and ethical responsibility. While Drucker's theories are often associated with business strategy, they also carry a powerful message for individuals.
This quote encapsulates the philosophy that individuals have the power and responsibility to shape their destinies. Instead of merely speculating or waiting for circumstances to unfold, it suggests that actively working toward a desired outcome is the most reliable way to ensure a successful future. By “creating” one's future, Drucker implies that we must take concrete steps, set intentional goals, and make decisions aligned with our long-term vision.
In a broader sense, the quote also speaks to those facing major life decisions or transitions. It encourages us to view challenges as opportunities to build our desired future rather than as obstacles to success. By emphasizing the importance of taking initiative, Drucker encourages a mindset that values planning, growth, and resilience.
This week, consider whether you are building your future or waiting for it. What steps should you be taking?
Last month, Indonesia banned the sale of the iPhone 16s as Apple failed to comply with Local Content Requirements (LCRs). Under these laws, foreign tech companies must have at least 40% of product value sourced or produced locally.
To fulfill Indonesia's LCRs, companies can use domestically sourced capital goods, services, and raw materials. Additionally, they can satisfy the value requirement by developing domestic applications or creating other innovative products locally. Apple chose to build developer academies locally. However, the Indonesian government said last month that Apple's Rp 1.5tn ($95mn) investment in Indonesia was short of a Rp 1.7tn commitment, resulting in the ban.
LCRs are an economic instrument and non-tariff measure used to promote infant markets and boost employment. Indonesia aims to stimulate domestic manufacturing and create jobs by requiring a minimum percentage of local content. This policy is part of Indonesia's larger goal of self-sufficiency and reducing import dependence.
However, many economists critique LCRs as they reduce efficiency and are inconsistent with a country's trade agreement commitments. Moreover, despite efforts to boost foreign investment, manufacturing's share of Indonesia's GDP decreased from 21.08% in 2014 to 18.67% in 2023. While the nominal manufacturing GDP increased, the decline in percentage suggests that manufacturing has not expanded enough to keep pace with the overall economy.
Indonesia's iPhone 16 ban illustrates the dynamic between multinational companies and governments with protectionist policies. Understanding broader economic trends offers strategic guidance for business obstacles and opportunities.
Some action steps for you:
Some links for you:
Fun Fact: Did you know that good posture doesn't just look good but also makes you feel good? Good posture can boost energy levels, reduce headaches, and even aid in digestion!
Disclaimer: The content of this newsletter is for informational purposes only and does not constitute professional advice.
Created by Rushil Patel 2024 ©