The Ministry of Industry will hold an internal leadership meeting today, November 21, to discuss Apple’s investment proposal of USD 100 million, or equivalent to IDR 1.6 trillion. If approved, the deal could pave the way for the iPhone 16 to be sold in Indonesia. 

 

“The meeting will be held tomorrow [Thursday] morning,” said the Ministry's spokesperson Febri Hendri Antoni Arief on Wednesday, November 20. 

 

The Ministry received Apple’s USD 100 million investment proposal on November 19. 

 

Initially, the American tech giant was rumored to invest USD 10 million to establish an accessory manufacturing plant in Bandung, West Java. If true, this latest proposal represents a tenfold increase in their planned investment. 

 

“The USD 100 million investment is for two years,” said a source familiar with the matter, as reported by Bloomberg on Tuesday, November 19. 

 

The investment offer emerged after the Ministry banned the sale of the iPhone 16 in Indonesia, citing non-compliance with the Local Content Requirements (TKDN). 

 

According to Ministry of Industry Regulation No. 29 of 2017, which governs the calculation of local content for mobile phones, handheld computers, and tablets, TKDN compliance can be achieved through three methods: 

 

1. Manufacturing products domestically or building factories. 
   
    

2. Creating software applications domestically. 
   
    

3. Developing innovations domestically. 
   
    

Apple opted for the third method by establishing its fourth Apple Academy in Bali. The company had already built three academies in BSD (Banten), Batam, and Surabaya. 

 

However, Apple has not yet realized its plans to construct the fourth academy, valued at around IDR 300 billion. 

 

As a result, the Ministry banned the sale of the iPhone 16 in the country. Negotiations between the Ministry and Apple have been ongoing for about a month. 

 

Based on the negotiations, the Ministry presented Apple with three conditions: 

 

1. Establishing an R&D Division 
   
   
   Apple must create a research and development (R&D) division in Indonesia. This division would differ significantly in scale from the existing Apple Academy. 

2. Involving Indonesian Companies in Apple’s Global Value Chain 
   
   
   Apple must actively integrate Indonesian companies into its Global Value Chain (GVC). Currently, only one company in Bandung, West Java, is part of Apple’s GVC, making Indonesia’s involvement one of the lowest globally. 

3. Continuing the Development of Apple Academy 
   
   
   Apple must proceed with the construction of its fourth Apple Academy in Indonesia. 

Original article here

 This article is published in partnership with Katadata