iPhone 16 to Enter Indonesia after Apple's $1 Billion Investment

The government ensures that the latest product, Apple iPhone 16, will officially enter the Indonesian market soon.

The American technology company is committed to increasing its investment.

So, what is the actual value of the investment offered by Apple to Indonesia? Is it relatively small?

The Minister of Investment and Downstreaming, or Head of BKPM, Rosan Roslani, said that Apple is committed to investing in Indonesia amounting to 1 billion US dollars or around 15.9 trillion rupiah.

This statement was delivered by Rosan in his remarks on Wednesday, December 11, 2024, in Jakarta.

Rosan said that Apple had submitted their investment plans in writing.

The government continues to communicate intensively with the US-based company.

Previously, since its launch in September 2024 until now, the latest Apple iPhone 16 product has not been allowed to circulate in Indonesia.

The Ministry of Industry argues that Apple has not met the Domestic Component Level (TKDN) obligations.

As a compromise, Apple initially offered an investment plan of 100 million US dollars in Indonesia, but this offer was considered too small as a barter for unmet TKDN obligations.

As a replacement, the Indonesian government recently asked Apple to invest in TKDN around 1 billion US dollars or around 15.9 trillion rupiah.

Although the government asked Apple to invest 1 billion US dollars or around 15.9 trillion rupiah, this amount is considered insignificant compared to Apple's investment in neighboring countries like Vietnam.

How large is Apple's investment in Vietnam and why is it so?

As is known, Apple CEO Tim Cook during his visit to Indonesia on April 17, 2024, stated his commitment to invest a total of 1.6 trillion rupiah in Indonesia.

In the agreement, it was agreed that Apple must build educational infrastructure or the fourth Apple Developer Academy, namely in Bali.

Previously, Apple already had three educational infrastructures in Indonesia.

Apple Academy itself is a program created by Apple to meet the TKDN requirements to import its phones to Indonesia.

Apple's investment model in Indonesia is different from what was done in Vietnam.

In Vietnam, the US technology giant actually built a factory or production facilities and its supporting facilities.

According to several reports, Apple has poured around 400 trillion Vietnamese Dong or equivalent to 205 trillion rupiah from the total investment.

Apple has also created around 200,000 jobs.

Citing local Vietnamese media, Vietnam Investment Review, Apple along with its supplier companies will move 11 production facilities from several countries, especially China, to Vietnam.

Not only Vietnam, Apple has also invested 4 trillion rupiah in Singapore.

There, Apple even has an official Apple Store directly managed by the company.

Whereas as a market, Indonesia is known to be the largest location for the sale of Apple's phones in Southeast Asia, reaching 2.61 million units in 2023.

The sales value of Apple in Indonesia is estimated to reach 30 trillion rupiah, much larger than the proposed investment value.