Jakarta – The Indonesian government has revealed new requirements for Apple to sell the iPhone 16 in the country. The technology giant from Cupertino must invest USD 1 billion, or approximately IDR 16 trillion.
This was disclosed by the Minister of Investment, Rosan Perkasa Roeslani, during a working meeting with the House of Representatives’ Commission XII on Tuesday (December 3, 2024). He is awaiting Apple’s response within the next week.
“We’ve had discussions and, God willing, for the first phase, I will get a written statement from them, requesting an investment of USD 1 billion for the first phase,” he said, as quoted by CNBC Indonesia.
Rosan firmly stated that the government’s stance is driven by the principle of fairness. The government under President Prabowo does not want Apple to simply take advantage of the Indonesian economy without giving back.
“Hopefully, within about a week, I will have the commitment that I will submit to the Ministry of Industry. Because, again, we want to see fairness,” he added.
Rosan also emphasized that the government hopes Apple will participate in advancing the Indonesian economy and add value to the local industry. Indonesia wishes for Apple to integrate the domestic industry into its global supply chain.
“Invest here, create jobs here. Also, most importantly, how the global value chain, the supply chain, moves its investment here. Because usually, once that happens, it will trigger a trickle-down effect to the suppliers to invest in Indonesia as well,” he said.
Previously, Apple offered an investment of USD 100 million, or about IDR 1.58 trillion, to build a component factory in Bandung, but this offer was not accepted by the government as it was considered insufficient relative to the market potential and the investment needs to achieve economic fairness. The government hopes that with an increased investment, Apple will be more integrated into the global supply chain and help create jobs in Indonesia.
This investment is also expected to help Indonesia achieve the national economic growth target of 7-8% set by President Prabowo Subianto. With a larger investment, Apple would not only take advantage of the domestic market but also have a significant impact on job creation and the growth of the technology sector in the country.
Apple, which faces a sales ban on the iPhone 16 due to local regulations requiring at least 35% local components, is currently in negotiations to meet this new requirement. The Ministry of Industry has stated that they will wait for Apple’s official commitment before issuing the necessary Domestic Component Level (TKDN) certification for the sale of the iPhone 16.
