Apple's proposed $100 million investment in Indonesia is currently under careful review by the Ministry of Industry (Kemenperin). The tech giant, which has presented its proposal for investment over two years, plans to establish several key facilities in Indonesia, including a product development center and a professional developer academy. Apple also intends to produce mesh components for its AirPods Max starting in July 2025, as part of its global supply chain.

Kemenperin's spokesperson, Febri Hendri Antoni Arif, emphasized that the Indonesian government is evaluating the proposal with a focus on fairness. "We are assessing whether the investment is equitable when compared to what Apple has committed to in other countries like Vietnam and India," he said, speaking from the ministry's Jakarta office on November 21, 2024. This consideration reflects Indonesia's concerns over the fairness of Apple's investment relative to the scale of its operations in other parts of Asia.

Apple’s $100 million proposal, which translates to approximately IDR 1.58 trillion at the current exchange rate, is seen as an important step in bolstering the company’s footprint in the region. However, the Indonesian government is also taking a broader view, looking at the overall fairness of the investment, especially in light of the existing commitments Apple has made to other companies operating in the country.

As part of this review, Kemenperin is also assessing Apple’s past promises. The company had previously committed to investing in Indonesia in 2020, with a total investment value of IDR 1.7 trillion. A significant component of that commitment was fulfilling the country’s requirements for local content production, known as the domestic content level (TKDN). Apple, however, has not yet completed all the obligations under this earlier agreement. Febri pointed out that Apple had left an outstanding commitment of IDR 271 billion from its earlier investment period, which lasted from 2020 to 2023.

The government is not only concerned with the financial aspects of Apple’s new proposal but also with its ability to create significant employment opportunities in Indonesia. With the Indonesian government aiming for an 8% annual economic growth target, Febri emphasized that Apple's investment must align with the country's broader economic objectives, particularly in terms of job creation and technological development.

Moreover, there is a consideration within Kemenperin to revise existing regulations, such as the Ministerial Regulation No. 29 of 2017, which deals with the local content level (TKDN) requirements. These revisions are seen as necessary to better align with Indonesia’s current economic needs, particularly as it seeks to attract more foreign investment while encouraging local technological innovation.

Kemenperin is also closely monitoring Apple’s ongoing commitment to its original promises. The company had previously announced plans to build additional Apple Academies in Bali and Jakarta by June 2026. These educational initiatives are part of Apple’s broader strategy to invest in local talent and build a skilled workforce in Indonesia. However, the success of these initiatives is contingent on Apple's fulfillment of its previous obligations.

In summary, while Apple’s proposal to invest in Indonesia is welcomed, the government’s evaluation centers around ensuring that the company’s commitment is fair and meets the expectations set by both the Indonesian government and local industries. As the review progresses, Apple’s ability to follow through on its previous promises will be critical to the success of this potential investment.

TEMPO