Heaptalk, Jakarta — Indonesia’s government, through the Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, has urged the American company Apple to increase its investment commitment to a minimum of US$1 billion (approximately Rp15.93 trillion). The government expects this to materialize within the week.
“I have already engaged in discussions with them regarding this matter as an initial phase. I requested that they provide a formal written statement concerning the matter. I anticipate to secure this investment commitment within a week, which I will subsequently present to the Minister of Industry,” he stated.
Rosan highlighted that Apple’s investment in Indonesia has been relatively modest. The Investment Coordinating Board (BKPM) is collaborating with the Ministry of Industry to encourage Apple to significantly increase its investment, particularly in developing a global supply chain and enhancing the domestic content level (TKDN) to at minimum 40%.
In addition to increasing investment, Indonesia will urge Apple’s global supply chain to relocate within its borders. This initiative is anticipated to create opportunities for other corporate suppliers to invest, strengthening the nation’s digital ecosystem.
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.
Nevertheless, the Minister of Industry, Agus Gumiwang, affirmed that the company’s investment proposal must still the four critical fairness principles, 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 those of 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.
“Most importantly, ensure that the global value chain, including the supply chain, can be established here. Typically, once one major player relocates, it serves as a trigger or creates a multiplier effect, prompting its suppliers to follow suit and invest in Indonesia,” Minister Rosan conveyed, cited in Bisnis.