CORPORATE DIPLOMACY OF MULTINATIONAL COMPANIES IN ENTERING THE INDONESIAN MARKET: A CASE STUDY OF APPLE INC.

Abstract

This study examines the practice of corporate diplomacy carried out by Apple Inc. in maintaining market access and business sustainability in Indonesia amid government regulatory pressures, particularly the Domestic Component Level (TKDN) policy. Indonesia has become one of the largest digital markets in Southeast Asia with significant potential for Apple; however, the company faces several challenges, including investment obligations, TKDN certification barriers, and restrictions on iPhone product marketing in Indonesia. research employs a qualitative method with a case study approach. Data collection was conducted through document studies using official company reports, government regulations, national and international media reports, and other relevant secondary sources. The study applies theoretical triangulation by combining the perspectives of International Political Economy (IPE), David Baron’s Strategic Nonmarket Participation, as well as Corporate Diplomacy and the DIPLOM framework proposed by Witold J. Henisz to analyze the relationship between Apple and the Indonesian government. The findings indicate that Apple does not merely rely on its global brand power and market strategies to maintain its position in Indonesia. Instead, the company carries out various corporate diplomacy activities through investment adjustments, political engagement with the government, social approaches through the Apple Developer Academy, and the strengthening of corporate social legitimacy. These activities are conducted to maintain market access, build long-term relations with the Indonesian government, and adjust the company’s global business interests to Indonesia’s domestic policies. This study demonstrates that corporate diplomacy has become an important strategy for multinational corporations in dealing with regulations in developing countries and maintaining business sustainability in global markets.