Indonesia expects US$1 billion investment commitment from Apple in a week

[JAKARTA] Indonesia is expecting to get a US$1 billion investment commitment from tech firm Apple in a week, its investment minister said on Tuesday (Dec 3), following the ban on iPhone 16 sales for failing to meet local content rules.

Investment Minister Rosan Roeslani revealed during a parliamentary hearing on Tuesday that the government will meet Apple representatives within the next week to secure a commitment for the investment. “We have already discussed the first phase, and I will receive a written statement from them requesting an investment of US$1 billion for the first phase,” he noted.

Apple had initially proposed a US$100 million investment to establish an accessory and component plant in Indonesia, hoping to overturn the ban.

However, the government turned down the offer, citing that it fell short of meeting the principle of fairness. The rejection underscored the nation’s commitment to ensuring that all investments align with its broader economic and ethical standards. “Ultimately, it’s about fairness. If Apple benefits from Indonesia, they must invest here and create jobs in the country,” said Roeslani.

Meanwhile the Ministry of Industry has revealed plans to revise local content requirement regulations, in a move to push global manufacturing companies to invest in Indonesia.

Faisol Rizal, deputy minister of industry, explained that the government is considering raising the local content requirement threshold and reassessing whether elements like research and development (R&D) should still factor into meeting the requirement. “The main goal of these regulatory changes is to strengthen and support the growth of Indonesia’s domestic industry,” he explained.

Indonesia currently requires a 35 per cent local content for electronic manufacturers before their products can be sold in the country. Although Apple does not have a manufacturing facility in Indonesia, the company operates two Apple Developer Academies in Jakarta and Batam, nurturing local talent and innovation.