Apple is set to invest $1 billion (approximately IDR 15.9 trillion) in a new production facility in Indonesia, signaling a major step in its expansion in the Southeast Asian market. This move comes after a series of negotiations between the tech giant and the Indonesian government, culminating in a potential deal that could reshape the local tech landscape.

Indonesia’s Minister of Industry, Agus Gumiwang Kartasasmita, confirmed that Apple is keen to build a production facility in the country, aiming to support the local production of its products, including the upcoming iPhone 16 series. "Regarding the iPhone, God willing, they will choose the first scheme, which is investment in production facilities," Agus said during the Industrial Fest 2024 in Surabaya. This facility would not only produce iPhones but also accessories and components, potentially contributing significantly to Indonesia's manufacturing sector.

This investment offer follows a series of rejected proposals from Apple, including an initial $10 million offer that was rejected by the Indonesian government due to its insufficient alignment with local regulations. Apple's subsequent offer of $100 million was also dismissed for similar reasons. However, Indonesia is now pushing for a more significant commitment of $1 billion to ensure a fair investment for both sides. The government expects a formal commitment letter from Apple within the week.

The primary focus of the investment will be on establishing a factory in Indonesia, which could create thousands of local jobs and foster the development of advanced manufacturing capabilities. Although specific details of the factory's design have yet to be disclosed, it is expected to include critical facilities such as production lines, warehouses for raw materials, and research and development laboratories.

Agus highlighted the importance of ensuring that this investment brings tangible benefits to Indonesia, such as skill development, job creation, and a strengthened local supply chain. "We will assist in facilitating the investment process to ensure Apple’s production facility is successfully established, enabling the company to grow and contribute to Indonesia's economic development," he said.

Apple’s commitment to investing in Indonesia further underscores the country’s growing appeal as a manufacturing hub in the Asia-Pacific region. The $1 billion investment deal aligns with the government's vision to attract foreign direct investment and create a robust ecosystem for high-tech manufacturing.

KOMPAS