Indonesia's Ministry of Industry (Kemenperin) is set to summon Apple for discussions regarding two key matters: settling its outstanding investment commitment for 2023 and discussing a new investment proposal for 2024-2026. Minister of Industry Agus Gumiwang Kartasasmita confirmed this move during a press briefing on Monday, November 25, 2024, in Jakarta.

The first issue on the table is Apple’s failure to meet its 2023 investment commitment, which still has a shortfall of approximately $10 million. Apple had originally committed to investing $108 million between 2020 and 2023 for the construction of a factory in Bandung, West Java, focused on producing accessories and components. However, the company has not yet completed this financial obligation, prompting Kemenperin to address the issue directly with the tech giant.

The second agenda for the meeting involves discussing Apple’s proposal for further investments from 2024 to 2026. While Apple has expressed its intention to invest $100 million (approximately Rp 1.59 trillion) in Indonesia, this amount is currently being evaluated by Kemenperin. The Ministry has raised concerns over whether this proposed investment aligns with the principles of fairness, particularly when compared to Apple’s investments in other countries.

Kemenperin’s evaluation focuses on several criteria. First, there is the issue of equity in comparison with Apple’s investments elsewhere. In particular, the Ministry is looking at how much Apple is investing in manufacturing facilities in other regions. The second concern is the creation of added value and national revenue, while the third focuses on the potential for job creation within the country. Finally, the Ministry is also considering how Apple’s investment proposal compares to that of other tech companies, especially those producing gadgets and laptops.

The $100 million investment offer, although significant, still falls short in meeting Kemenperin’s expectations for fairness and proportionality. The Ministry has stated that, based on their technical assessments, the amount is not sufficient given the broader economic and developmental goals that the investment should meet. The Ministry's stance suggests that unless Apple’s proposal meets these criteria, the deal may face difficulties in moving forward.

Furthermore, this investment proposal comes at a time when Apple is also working to lift its iPhone 16 block in Indonesia. The government’s scrutiny of Apple's investments is part of a broader effort to ensure that the company’s operations in the country benefit Indonesia’s economy. Apple's move to increase its investment offer, which initially was $10 million, reflects the company’s desire to strengthen its position in the Indonesian market.

As the government continues to assess Apple’s investment proposals, there is growing pressure on the tech giant to meet its prior commitments and ensure that future investments contribute meaningfully to Indonesia’s economic development. The negotiations over the next few weeks will likely determine the future trajectory of Apple's business in Indonesia, particularly as it navigates local regulatory requirements and its ongoing relationship with the government.