Indonesia has become the first country in Asia to host an Apple research and development (R&D) center, following an investment commitment deal between the Ministry of Industry (Kemenperin) and Apple for the 2023-2029 period. This makes Indonesia the second country outside the United States to have an Apple R&D facility, after Brazil.

Minister of Industry Agus Gumiwang Kartasasmita announced the breakthrough during a press conference in Jakarta on Wednesday (Feb 26). “Apple has only built R&D facilities in the U.S. and Brazil. We will be the second country outside the U.S. and the first in Asia to have an Apple R&D center,” he said.

The establishment of Apple's R&D center in Indonesia is expected to boost the national industrial sector and strengthen the country's research and innovation capabilities. It will also create new job opportunities and provide Indonesian university experts and students with hands-on experience in research and development.

Apple's decision to build an R&D center in Indonesia stems from the country’s strong pool of human resources. According to Agus, Indonesia’s skilled workforce is ready to support Apple’s R&D operations. The project will collaborate with 15 universities, including ITB, UI, UGM, and ITS, under the Indonesia Chip Design Collaborative Center (ICDEC).

The R&D center will focus on developing human resources, particularly in software innovations for healthcare, the Internet of Things (IoT), and artificial intelligence (AI).

As part of the deal, Apple will also establish the Apple Software Innovation and Technology Institute, the Apple Professional Developer Academy, and continue its Apple Academy programs. The Professional Developer Academy will serve as a hub for tech experts, both Apple Academy graduates and external talents, to advance their skills and contribute to technological development.

Additionally, Apple has pledged further investments to address penalties from previously unmet innovation commitments, as outlined in Regulation No. 29 of 2017 by Kemenperin. To fulfill this, Apple will bring its Global Value Chain (GVC) partner, ICT Luxshare, to invest $150 million in building a factory in Batam. The factory will manufacture AirTag accessories, making Indonesia the supplier for 65% of AirTags worldwide.

Apple has also committed to sourcing AirTag battery components from local manufacturers, reinforcing its support for Indonesia's domestic supply chain.

The finalization of this investment commitment was sealed through a Memorandum of Understanding (MoU) signed by Kemenperin and Apple on Wednesday (Feb 26).

This strategic partnership highlights the Indonesian government's firm stance in negotiations with global tech giants, showcasing its efforts to create thousands of new jobs, foster the tech startup ecosystem, and enhance Indonesia’s global competitiveness.

PHOTO: KEMENPERIN

This article was created with AI assistance.