Indonesia is set to receive a USD 1 billion investment commitment from Apple Inc., according to Investment and Downstreaming Minister Rosan Roeslani.  

 

The commitment follows the Indonesian government’s ban on iPhone 16 sales due to non-compliance with local content requirements, which mandate at least 40% locally produced components in products sold domestically. 

 

Minister Rosan, speaking before lawmakers on December 4, confirmed, “God willing, within a week, I will get a written statement from [Apple] for an investment of USD 1 billion,” further adding that the planned investment represents the first phase of Apple’s efforts to address Indonesia’s regulatory demands.  

 

Previous proposals, including a USD 100 million bid to build an accessory and component plant, were rejected by the government for failing to meet expectations. 

 

That amount is an increase from an earlier USD 10 million proposal made in early November, following the government's initial ban on the new iPhone model in the Indonesian market. 

 

As of 2023, Apple had invested approximately IDR 1.48 trillion (roughly USD 94.14 million) in developer academies in Tangerang, Surabaya, and Batam, a move criticized for falling short of its IDR 1.7 trillion pledge. 

 

The government’s push for increased local investments is driven by comparisons to neighboring Vietnam, which has attracted USD 15.8 billion in Apple-related investments between 2019 and mid-2024.  

 

Highlighting the potential ripple effects of Apple’s involvement, Rosan said, “If one supporting Apple production moves here, it will encourage their suppliers to invest in Indonesia.” 

 

Industry comparisons further highlight the gap in investment levels. Rival companies South-Korea based Samsung and China-based Xiaomi have invested IDR 8 trillion and IDR 55 trillion, respectively, in local production facilities. Additionally, Indonesia has led Southeast Asia in iPhone sales with 2.5 million units sold, generating IDR 30 trillion in revenue, according to the Ministry of Industry. 

 

In a separate interview, the Ministry of Communication and Digital Affairs has also emphasized the need for a "transfer of knowledge" as part of the investment. “We hope this investment will include knowledge transfer and upskilling of our digital talent,” said Deputy Minister Nezar Patria stated, as quoted by Katadata. 

 

Apple representatives have yet to comment on these developments. The government remains hopeful for a swift resolution, expecting a formal investment commitment within a week.