Indonesia has taken a firm stance on Apple's entry into its market for the upcoming iPhone 16. The government is requesting a substantial investment from Apple in exchange for the ability to sell the latest iPhone model in Indonesia. Specifically, the Ministry of Investment is asking for a commitment of at least $1 billion (around IDR 16 trillion) from Apple to secure the rights to sell the iPhone 16 locally. This is a clear sign of Indonesia's intent to ensure that major foreign companies contribute significantly to the local economy.

Currently, Apple is not permitted to sell the iPhone 16 in Indonesia due to the company’s failure to meet the local content requirements, known as TKDN (Tingkat Komponen Dalam Negeri). Indonesia has a regulation that mandates a certain percentage of local content in electronic products before they are allowed for sale. This includes components sourced from Indonesian suppliers and manufacturing processes conducted within the country.

In a statement to the Indonesian parliament, Rosan Perkasa Roeslani, the Minister of Investment and Head of the Investment Coordinating Board (BKPM), mentioned that Apple has already engaged in discussions with the government and expressed a willingness to enhance their investment in the country. "We have talked, and I hope they will commit in the first phase," Rosan said. "We are requesting a $1 billion investment from Apple."

This investment request is in line with the government’s principles of fairness, as Rosan emphasized that Indonesia seeks to see tangible benefits from foreign companies operating within its borders. The government’s stance is clear: they want Apple to not only take advantage of the Indonesian market but also contribute to the country's economic growth.

The primary goal of the government is to integrate Apple more deeply into the local supply chain and help boost local industries. “We want Apple to invest here, create jobs, and bring the global value chain into Indonesia,” said Rosan. The idea is that once a major player like Apple moves its production or investments to Indonesia, this can trigger a positive ripple effect throughout the supply chain, prompting smaller suppliers to follow suit and establish their own operations in the country.

This strategy reflects Indonesia's broader ambition to become a more attractive destination for foreign investments in high-tech industries. The push to integrate Apple’s supply chain within Indonesia's economy is part of a larger plan to boost local industries and create sustainable jobs.

While Apple’s initial investment proposal of $100 million was rejected by the government, this new request for $1 billion demonstrates Indonesia’s strong negotiating position and its desire for fairness in international business relationships. The government is also hopeful that this investment will help foster a more balanced economic partnership, where Indonesia stands to gain significantly from its association with global tech giants like Apple.

Indonesia’s emphasis on fairness and economic equity represents a shift in how the country is positioning itself on the global stage—focusing on long-term growth and sustainable partnerships rather than short-term profits. If Apple agrees to meet the $1 billion investment demand, it could pave the way for stronger collaboration between the two parties, benefiting both Indonesia’s economy and Apple’s presence in the Southeast Asian market.

CNBCINDONESIA