The Ministry of Investment and Downstream Industries\/BKPM is\noptimistic that Apple\u2019s investment commitment will continue despite the\nimposition of 19 per cent reciprocal tariffs on Indonesia.<\/p>\n
\u201cApple has already purchased land for its investment plan in Batam. I\nbelieve we will proceed,\u201d said Riyatno, Deputy for Investment Climate\nDevelopment at the Ministry of Investment and Downstream\nIndustries\/BKPM, at the Smesco building in South Jakarta on Friday, 18\nJuly 2025.<\/p>\n
Nevertheless, Riyatno declined to disclose further details regarding\nplans between the government and Apple, requesting that questions about\nthe investment be directed to Minister of Investment and Downstream\nIndustries\/Head of BKPM Rosan Roeslani.<\/p>\n
Regarding the implementation of import tariffs, Riyatno said his\nministry remains committed to seeking and attracting investors,\nparticularly given this year\u2019s investment realisation target of Rp 1,905\ntrillion. \u201cOf course, not only from the United States, but also from\nEurope and various countries across East Asia, China, Japan, Korea, and\nothers,\u201d he said.<\/p>\n
Earlier last year, Minister of Industry Agus Gumiwang Kartasasmita\nannounced the signing of a memorandum of understanding with Apple,\nconfirming an agreed investment of US$160 million. According to Agus,\nthe agreement would add economic value to Indonesia despite five months\nof arduous negotiations.<\/p>\n
\u201cToday we signed an MoU between the Ministry of Industry and Apple,\u201d\nAgus said at a press conference at the Ministry of Industry on\nWednesday, 26 February 2025.<\/p>\n
Rather than building a manufacturing plant in Indonesia, Apple opted\nfor a third scheme involving innovation investment. Under this\narrangement, Apple will receive a local content requirement (TKDN)\ncertificate for a new cycle covering the period 2025 to 2028. Once the\ncycle concludes, Apple must submit a new investment proposal in\naccordance with the third investment scheme\u2019s requirements.<\/p>\n
Agus emphasised that Apple\u2019s investment would be provided in hard\ncash. \u201cIn this new cycle, we have agreed that Apple\u2019s innovation\ninvestment under scheme three will amount to US$160 million in hard\ncash,\u201d he said.<\/p>\n
He noted that one form of the Rp 2.62 trillion investment would\ninvolve Apple bringing its supplier companies, or global value chain\npartners, to invest in Indonesia. Agus said Apple had designated two\ncompanies: ICT Luxshare, which will manufacture AirTags in Batam, Riau\nIslands, and Long Harmony in Bandung, West Java, which will produce Mesh\nAirPods Max components.<\/p>\n
Additionally, Agus revealed that Apple had agreed to the government\u2019s\ncondition of establishing research and development centres in Indonesia.\nApple committed to founding the Apple Software Innovation and Technology\nInstitute, the Apple Professional Developer Academy, and continuing the\nApple Academy programme.<\/p>\n
\u201cWith the completion of negotiations between the Ministry of Industry\nand Apple, as documented in the MoU, the process of issuing TKDN\ncertificates for Apple can now commence,\u201d Agus explained regarding the\nnext steps following the agreement.<\/p>\n
Previously, Apple had been unable to distribute its iPhone 16\nproducts in Indonesia as it had not yet met the requirements for TKDN\ncertificate issuance.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/apples-investment-commitment-to-indonesia-expected-to-continue-despite-reciprocal-tariffs-1771256698", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }