TEMPO.CO, Jakarta - The Ministry of Investment and Downstream Industry/BKPM is optimistic about Apple's investment commitment amid Indonesia's 19 percent reciprocal tariff. "Apple has also purchased land for investment plans in Batam, and I believe we will continue," said Deputy for Investment Climate Development at the Ministry of Investment and Downstream Industry/BKPM, Riyatno, at the Smesco building, South Jakarta, on Friday, July 18, 2025.
However, Riyanto declined to disclose further plans between the government and Apple. He asked that questions regarding investment with the technology company be directed to the Minister of Investment and Downstream Industry/BKPM Head, Rosan Roeslani. "Maybe the development should be directed to the Minister," he said.
Regarding the application of import tariffs, Riyanto stated that the ministry is committed to seeking and attracting investors, especially with the target of achieving an investment realization of Rp1.905 trillion this year. "Certainly not only from America, but also from Europe, various countries in East Asia, China, Japan, Korea, and others."
Earlier last year, Minister of Industry Agus Gumiwang Kartasasmita stated that a memorandum of understanding had been signed with Apple. Additionally, Agus said a US$160 million investment had been agreed upon.
According to Agus, although the process has been challenging over the past five months, this agreement could add economic value to Indonesia. "Alhamdulillah, today we signed an MoU between the Ministry of Industry and Apple," said Agus in a press conference at the Ministry of Industry office on Wednesday, February 26, 2025.
Instead of building a manufacturing plant in Indonesia, Apple has chosen a third scheme involving innovation investment. With this decision, Apple will obtain a new domestic component level certificate (TKDN) for the period from 2025 to 2028.
After this cycle ends, said Agus, Apple will have to submit a new investment proposal according to the requirements of the third investment scheme. Agus also emphasized that the value of Apple's investment will be in hard cash. "In this new cycle, we have agreed that Apple's innovation investment under the third scheme will be worth US$160 million in hard cash," said Agus.
He mentioned that one form of the Rp2.62 trillion investment is for Apple to bring in its supplier or global value chain (GVC) to invest in Indonesia. Agus said that two companies sent by Apple are ICT Luxshare, which will produce AirTags in Batam, Riau Islands, and Long Harmony in Bandung, West Java, which will make components for the Mesh AirPods Max.
Furthermore, Agus also revealed that the government required Apple to agree to establish a research and development center in Indonesia. According to Agus, Apple is committed to establishing the Apple Software Innovation and Technology Institute, Apple Professional Developer Academy, and continuing the Apple Academy program.
"Therefore, with the completion of negotiations between the Ministry of Industry and Apple as stated in the MoU, the process of issuing a TKDN certificate for Apple can begin," Agus explained the follow-up after reaching the agreement. Previously, Apple was unable to distribute the iPhone 16 products because they did not meet the TKDN certificate requirements.
Dian Rahma Fika contributed to this article
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