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December 12, 2024 | 10:18 pm
TEMPO.CO, Jakarta - Indonesian Investment Minister or Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, has announced that multinational technology giant Apple Inc. has committed to investing US$1 billion in Indonesia by 2025-2026.
Apple, founded by Steve Jobs in 1976, plans to establish several facilities in Indonesia, including a product development center and a professional developer academy. Furthermore, the company intends to commence the production of mesh components, such as Airpods Max ear cushions, within Indonesia by July 2025, as part of its global product supply chain.
Rosan revealed that the Indonesian government is actively engaged in daily discussions with Apple representatives, despite the time zone differences. “They have already conveyed their commitment to us in writing, although the initial points were communicated via WhatsApp. We have submitted these points to the Ministry of Industry,” the Minister said at the 2024 National Investment Coordination Meeting (Rakornas) in South Jakarta on Wednesday, December 11, 2024.
This written commitment outlines the specific forms of investment that Apple will undertake in Indonesia and details the types of vendors that will be brought to the country from the United States.
“This is just a matter of fine-tuning, as they have provided us with a written commitment. But further discussions with relevant ministries are necessary,” Rosan explained. “Regarding their commitment, there is no room for doubt as they have provided detailed plans.”
Rosan emphasized that the production of iPhone 16 components involves a complex supply chain, with over 320 vendors contributing to the manufacturing process. He highlighted that the vendors brought to Indonesia by Apple are expected to generate minimum sales of US$1 billion, or approximately Rp15.9 trillion based on the current exchange rate.
He noted that the Ministry of Industry wants the realization of this investment to start next year while Apple has expressed a preference for initiating investments in 2026. He emphasized that the timeline is subject to further negotiation and that the government is actively working to accelerate the investment timeline. “It's just a difference in timelines. We are now working to persuade them to commence it in 2025 but they have already conveyed it to us in writing,” he explained.
Oyuk Ivani S. contributed to the writing of this article.
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