Apple Offers $10 Million Investment to Indonesia for Local Expansion
Apple Inc. has recently made an offer to the Indonesian government, proposing an additional investment of nearly $10 million, or approximately IDR 157 billion.
This move is seen as part of Apple's effort to remove barriers to selling its latest iPhone 16 models in the country, as confirmed by several sources.
Read also: Google Pixel Sales Bans in Indonesia, Just Days After iPhone 16 Blocked
iPhone Sales Blocked Due to Local Component Requirements
The Indonesian Ministry of Industry had previously blocked the sale of new iPhone models in the domestic market, citing the company's failure to secure the required Domestic Content Certification (TKDN).
Without this certification, Apple’s devices cannot be legally sold in Indonesia, which has created a significant hurdle for the company's product distribution in the region.
Read also: Apple vs. Domestic Law: Indonesia Blocks iPhone 16 Sales Due to Investment and Certification Issues
Apple’s Plan to Invest in Bandung Facility
According to reports from Bloomberg Technoz, Apple is planning to invest in a manufacturing facility in Bandung, West Java, through a partnership with several of its suppliers.
This is part of a broader strategy to localize production and meet the country's regulatory requirements. Sources familiar with the matter, who requested anonymity due to lack of authorization to speak publicly, revealed that Apple aims to expand its presence in Indonesia by producing accessories and components for its devices.
Read also: Bringing iPhone 16 to Indonesia for Sale? It's Illegal!
Meeting the 40% TKDN Requirement
Apple has already submitted its investment proposal to the Indonesian Ministry of Industry to comply with the 40% Domestic Content Requirement (TKDN) for smartphones and tablets sold in the country.
This move is crucial for Apple to legally sell its devices in Indonesia and to align with the government’s policy of encouraging local production. The establishment of a manufacturing plant would not only allow Apple to meet regulatory standards but also strengthen its foothold in the Indonesian market.
Indonesian Government's Response
The Ministry of Industry is currently reviewing Apple’s proposal. This initiative comes at a time when Indonesia’s new administration, led by President Prabowo Subianto, is actively pushing for more foreign investment in the country.
The government is keen to attract international companies to invest in various sectors, particularly manufacturing, to boost economic growth and create job opportunities.
Read also: Apple's Asia Expansion Continues: First Retail Store in Malaysia to Open Next Month
Apple's Potential Expansion in Indonesia
If the proposal is approved, Apple’s expanded investment in Indonesia could pave the way for long-term growth in the country’s tech manufacturing sector.
By building partnerships with local suppliers and establishing production facilities, Apple would not only be able to meet local regulations but also contribute to Indonesia's broader goal of becoming a global hub for electronics and technology manufacturing.
