Jakarta – The Indonesian government has intensified its efforts to encourage Apple, one of the world’s most valuable companies with a market capitalization of $3.75 trillion, to accelerate its investment plans in the country by 2025. Minister of Investment and Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, emphasized that this initiative reflects the government’s commitment to positioning Indonesia as a strategic hub for technological development and manufacturing in Southeast Asia.
Speaking on the sidelines of the 2024 National Investment Coordination Meeting in Jakarta on Wednesday, December 11, Rosan highlighted the ongoing negotiations with Apple. The government is pressing the tech giant to begin its investment process a year earlier than Apple’s proposed timeline of 2026. “The Ministry of Industry is keen to see the realization starting in 2025, whereas Apple initially targeted 2026. We want to ensure that the focus remains on bringing this forward to 2025,” Rosan stated.
This push for earlier investment comes after months of detailed and frequent communication between government officials and Apple’s representatives. According to Rosan, Apple has already submitted several critical points for consideration, all of which have been conveyed to the Ministry of Industry for further assessment. These points cover various aspects of their potential operations in Indonesia, including the introduction of key vendors that would accompany Apple’s entry into the local market.
One of the pivotal discussions revolves around the potential vendors Apple would bring as part of its investment strategy. Rosan explained that Apple plans to start with a single vendor, which would serve as a foundational step for broader integration in Indonesia. “This is essentially fine-tuning, but further discussions are necessary. The hope is that this initial vendor will pave the way for additional ones. For context, the production of a single iPhone 16 involves 320 vendors globally. So far, Indonesia is set to receive just one, which is relatively small. However, this vendor is a major player, capable of generating a minimum of $1 billion in sales,” he elaborated.
The government sees Apple’s potential investment as a transformative opportunity for Indonesia’s economy, particularly in terms of job creation, technology transfer, and supply chain development. By encouraging Apple to bring its ecosystem of vendors and partners, the government aims to elevate Indonesia’s role in the global tech manufacturing landscape.
Rosan underscored that this negotiation is not merely about numbers but also about positioning Indonesia as a competitive and attractive destination for global tech giants. The success of this investment would signify Indonesia’s readiness to integrate into the high-value technology sector, benefiting from the ripple effects of Apple’s presence.
The dialogue between the Indonesian government and Apple reflects a strategic alignment of goals, with both parties working to finalize the terms of engagement. If realized, the investment could mark a significant milestone in Indonesia’s industrial and economic development, cementing its status as a crucial player in the global technology supply chain.
