Indonesia Minister Says $1 Billion Investment Commitment From Apple Expected in a Week

Indonesia is expecting to get a $1 billion investment commitment from tech firm Apple Inc in a week, its investment minister said on Tuesday, after the government banned iPhone 16 sales for failing to meet its local content rules. Minister Rosan Roeslani told lawmakers in a hearing that Indonesia expects more investment if Apple decides to make Indonesia part of its supply chain.

While the specifics are unclear currently, the confirmation comes a week after Indonesia rejected Apple's proposal to invest about 1.6 trillion Indonesian rupiah (roughly $100 million) into building a plant to manufacture accessories and components. Apple's decision to invest was prompted by the ban on its latest iPhone 16 devices in the island nation. Jakarta said the iPhone 16 and iPhone 16 series could not be commercially available in the country without the TKDN certification, which requires certain smartphones to include at least 40 per cent locally-sourced components.

“We, the Ministry of Industry, are yet to be able to issue permits for the iPhone 16 because there are still commitments that Apple must realise,” said Kartasasmita last month. He had told local media that the extension of the TKDN (equivalent to India’s BSI certificate) certification is “still pending, awaiting further investment realisation from Apple.”

According to the minister, Apple committed an investment into building more facilities in Indonesia earlier this year. Although it does not have manufacturing units, Apple has since 2018 set up application developer academies with a combined cost of 1.6 trillion Indonesian rupiah ($99 million). While it was considered a way for the company to meet local content requirements for the sale of older iPhone models initially, the Indonesian government last week rejected Apple's investment proposal, calling it “inadequate.”

"We have done an assessment and this (proposal) has not met principles of fairness," Industry Minister Agus Gumiwang Kartasasmita told a press conference on November 25, comparing the proposal to Apple's bigger investments in neighbouring Vietnam and Thailand.

Written with inputs from agencies