Apple's Investment Commitment to Indonesia Expected to Continue Despite Reciprocal Tariffs
The Ministry of Investment and Downstream Industries/BKPM is optimistic that Apple's investment commitment will continue despite the imposition of 19 per cent reciprocal tariffs on Indonesia.
"Apple has already purchased land for its investment plan in Batam. I believe we will proceed," said Riyatno, Deputy for Investment Climate Development at the Ministry of Investment and Downstream Industries/BKPM, at the Smesco building in South Jakarta on Friday, 18 July 2025.
Nevertheless, Riyatno declined to disclose further details regarding plans between the government and Apple, requesting that questions about the investment be directed to Minister of Investment and Downstream Industries/Head of BKPM Rosan Roeslani.
Regarding the implementation of import tariffs, Riyatno said his ministry remains committed to seeking and attracting investors, particularly given this year's investment realisation target of Rp 1,905 trillion. "Of course, not only from the United States, but also from Europe and various countries across East Asia, China, Japan, Korea, and others," he said.
Earlier last year, Minister of Industry Agus Gumiwang Kartasasmita announced the signing of a memorandum of understanding with Apple, confirming an agreed investment of US$160 million. According to Agus, the agreement would add economic value to Indonesia despite five months of arduous negotiations.
"Today we signed an MoU between the Ministry of Industry and Apple," Agus said at a press conference at the Ministry of Industry on Wednesday, 26 February 2025.
Rather than building a manufacturing plant in Indonesia, Apple opted for a third scheme involving innovation investment. Under this arrangement, Apple will receive a local content requirement (TKDN) certificate for a new cycle covering the period 2025 to 2028. Once the cycle concludes, Apple must submit a new investment proposal in accordance with the third investment scheme's requirements.
Agus emphasised that Apple's investment would be provided in hard cash. "In this new cycle, we have agreed that Apple's innovation investment under scheme three will amount to US$160 million in hard cash," he said.
He noted that one form of the Rp 2.62 trillion investment would involve Apple bringing its supplier companies, or global value chain partners, to invest in Indonesia. Agus said Apple had designated two companies: ICT Luxshare, which will manufacture AirTags in Batam, Riau Islands, and Long Harmony in Bandung, West Java, which will produce Mesh AirPods Max components.
Additionally, Agus revealed that Apple had agreed to the government's condition of establishing research and development centres in Indonesia. Apple committed to founding the Apple Software Innovation and Technology Institute, the Apple Professional Developer Academy, and continuing the Apple Academy programme.
"With the completion of negotiations between the Ministry of Industry and Apple, as documented in the MoU, the process of issuing TKDN certificates for Apple can now commence," Agus explained regarding the next steps following the agreement.
Previously, Apple had been unable to distribute its iPhone 16 products in Indonesia as it had not yet met the requirements for TKDN certificate issuance.
"Apple has already purchased land for its investment plan in Batam. I believe we will proceed," said Riyatno, Deputy for Investment Climate Development at the Ministry of Investment and Downstream Industries/BKPM, at the Smesco building in South Jakarta on Friday, 18 July 2025.
Nevertheless, Riyatno declined to disclose further details regarding plans between the government and Apple, requesting that questions about the investment be directed to Minister of Investment and Downstream Industries/Head of BKPM Rosan Roeslani.
Regarding the implementation of import tariffs, Riyatno said his ministry remains committed to seeking and attracting investors, particularly given this year's investment realisation target of Rp 1,905 trillion. "Of course, not only from the United States, but also from Europe and various countries across East Asia, China, Japan, Korea, and others," he said.
Earlier last year, Minister of Industry Agus Gumiwang Kartasasmita announced the signing of a memorandum of understanding with Apple, confirming an agreed investment of US$160 million. According to Agus, the agreement would add economic value to Indonesia despite five months of arduous negotiations.
"Today we signed an MoU between the Ministry of Industry and Apple," Agus said at a press conference at the Ministry of Industry on Wednesday, 26 February 2025.
Rather than building a manufacturing plant in Indonesia, Apple opted for a third scheme involving innovation investment. Under this arrangement, Apple will receive a local content requirement (TKDN) certificate for a new cycle covering the period 2025 to 2028. Once the cycle concludes, Apple must submit a new investment proposal in accordance with the third investment scheme's requirements.
Agus emphasised that Apple's investment would be provided in hard cash. "In this new cycle, we have agreed that Apple's innovation investment under scheme three will amount to US$160 million in hard cash," he said.
He noted that one form of the Rp 2.62 trillion investment would involve Apple bringing its supplier companies, or global value chain partners, to invest in Indonesia. Agus said Apple had designated two companies: ICT Luxshare, which will manufacture AirTags in Batam, Riau Islands, and Long Harmony in Bandung, West Java, which will produce Mesh AirPods Max components.
Additionally, Agus revealed that Apple had agreed to the government's condition of establishing research and development centres in Indonesia. Apple committed to founding the Apple Software Innovation and Technology Institute, the Apple Professional Developer Academy, and continuing the Apple Academy programme.
"With the completion of negotiations between the Ministry of Industry and Apple, as documented in the MoU, the process of issuing TKDN certificates for Apple can now commence," Agus explained regarding the next steps following the agreement.
Previously, Apple had been unable to distribute its iPhone 16 products in Indonesia as it had not yet met the requirements for TKDN certificate issuance.