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Technology

Why Apple’s $1 Billion Proposal Faces Delays

31 Dec, 2024
Why Apple’s $1 Billion Proposal Faces Delays

Apple has officially submitted an investment proposal worth $1 billion to Indonesia’s Ministry of Industry (Kemenperin). The proposal is part of Apple’s effort to sell the iPhone 16 officially in Indonesia and includes plans to build factories for AirTag and AirPods Max accessories.

According to Febri Hendri Antoni Arif, a spokesperson for Kemenperin, the proposal has been informally acknowledged by the Directorate General of Metal, Machinery, Transportation Equipment, and Electronics (ILMATE). However, formal discussions have not progressed as Apple has yet to attend in-person meetings, despite multiple invitations.

"So far, the formal response hasn’t been given. We are waiting for Apple representatives to meet us directly," Febri explained. The ongoing negotiations, carried out primarily via WhatsApp, have slowed the evaluation of Apple’s proposal.

As of late December 2024, no Apple representatives have visited the Ministry of Industry in person. Minister Agus Gumiwang had repeatedly invited Apple to discuss the proposal but to no avail. "We want their executives to attend physically," Febri emphasized.

Meanwhile, reports indicate that President Prabowo Subianto has approved Apple’s investment proposal, following discussions with the U.S.-based tech giant. The government views the investment as a significant opportunity, with expectations for even greater commitments in the future.

Despite this green light, Kemenperin is still cautious, noting that the proposal remains subject to further negotiations. "We can’t provide our assessment yet, as it depends on these discussions," Febri added.

Indonesia hopes Apple’s investment will not only facilitate the official sale of the iPhone 16 but also enhance the country’s manufacturing sector. The plan includes a factory for AirTag and AirPods Max in Batam, further solidifying Apple’s presence in Southeast Asia.



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