Heaptalk, Jakarta — Indonesia’s Ministry of Industry emphasized that Apple’s US$100 million investment proposal must still meet the four critical fairness principles. In particular, the Ministry of Industry, Agus Gumiwang Kartasasmita, concluded the matter in the Leadership Meeting (Rapim) and a thorough technocratic assessment of Apple’s additional investment plan. (11/25)
“Based on technocratic assessment, the figures do not yet meet the equitable standard.” Agus Gumiwang conveyed.
According to the Minister, key concerns identified including:
- Comparative investment in other countries: Apple has not established production facilities or factories in the archipelago.
- Investment Parity with Other HKT Brands: Apple’s proposed contributions lag behind competing brands in Indonesia.
- Value addition and state revenue: the proposal lacks adequate measures to create tangible economic value and boost state revenue.
- Job creation: the plan does not sufficiently address employment opportunities for the Indonesian workforce.
Consequently, the Ministry has determined a fair value threshold for Apple’s additional investment based on these fairness principles. Through the Industry Ministry, Indonesia also emphasized that Apple must settle its outstanding investment commitments worth US$10 million for last year, which separates from discussions of the new proposal.
The newly proposed plan, applicable for 2024–2026, is a prerequisite for Apple to secure its Domestic Component Level (TKDN) certification. Under Indonesia’s investment regulations, Apple must review and renew its investment proposal every three years, following its decision to adopt the innovation scheme to meet TKDN requirements.
Call for Production Facilities in Indonesia
The Directorate General of Metal, Machinery, Transportation Equipment, and Electronics Industries (ILMATE) has been instructed to summon Apple’s representatives to Indonesia to resolve the last investment commitments and deliberate on the 2024–2026 proposal.
The Ministry strongly urged Apple to establish production facilities within Indonesia to eliminate the recurring need for proposal negotiations every three years. As part of broader policy reforms, the Ministry has also initiated a review of Regulation No. 29/2017 concerning the Calculation of Domestic Component Levels for Mobile Phones, Handheld Computers, and Tablets. This revision aims to adapt to the evolving HKT industry landscape and reinforce fairness in investment practices.
This decisive stance underscores the Ministry’s commitment to fostering equitable investment and ensuring that global tech players contribute significantly to Indonesia’s industrial development.
Previously, the U.S.-based tech company had pledged only $10 million to establish a production facility for components and accessories in Bandung, West Java. Furthermore, Apple has proposed increasing its investment by US$100 million over two years. This enhanced investment offer is expected to encourage the Indonesian government to lift the ban on selling the iPhone 16 in the country, which remains an issue today.
