Jakarta, Indonesia Sentinel — Indonesia’s Ministry of Industry is urging Apple to engage in formal negotiations to finalize a proposed investment plan valued at IDR 16 trillion (approximately $1 billion). According to Febri Hendri Antoni Arif, the Ministry’s spokesperson, communication with Apple has so far been limited to informal discussions via WhatsApp.
Investment Proposal Still Under Review
Apple has submitted an official investment proposal to the Ministry of Industry, matching the $1 billion plan previously communicated through Indonesia’s Investment Ministry. However, the proposal has yet to be formally discussed, a necessary step toward realizing the tech giant’s ambitious plans in the country.
“Apple has sent an official investment proposal to the Directorate General of Metal, Machinery, Transportation Equipment, and Electronics Industries (Dirjen Ilmate) at the Ministry of Industry. The proposal is the same as the one filed with the Investment Ministry. We’ve responded informally, but formal negotiations are still pending. We’re waiting for Apple representatives to come here and discuss directly,” Febri said during a press conference on December 30, 2024.
Ministry Invites Apple for Discussions
Minister of Industry Agus Gumiwang Kartasasmita has extended multiple invitations to Apple to discuss their investment plans. Despite repeated efforts, the company has yet to send representatives to engage in direct talks.
“Our communication so far has been through WhatsApp,” Febri admitted. “The Minister has invited them several times, but they haven’t shown up. That’s fine—write it down as it is.”
Regulatory Compliance at Stake
The Ministry emphasized that Apple’s delay in addressing its investment obligations could affect the company’s ability to sell its upcoming iPhone 16 model in Indonesia. Compliance with local regulations is a critical requirement for legal market access.
“If they don’t fulfill their investment commitments, they’re not complying with Indonesian regulations. We expect a response from Apple, ideally with high-level representatives attending in person,” Febri added.
Concerns Over Investment Fairness
Previously, the Ministry of Industry had expressed concerns about the fairness of Apple’s proposed $100 million (approximately IDR 1.5 trillion) investment, noting that it fell short of expectations. Minister Agus highlighted four key areas for consideration:
- Global Comparisons: Apple’s investment in other countries dwarfs its current plans for Indonesia, with no manufacturing facilities planned locally.
- Competitor Benchmarks: Investments by other smartphone brands in Indonesia set a higher bar for Apple’s contributions.
- Economic Value: The plan must ensure substantial value addition and revenue generation for Indonesia.
- Job Creation: The investment should significantly contribute to local employment.
Following a leadership meeting, the Ministry determined that Apple needs to increase its proposed investment to align with these equitable benchmarks.
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Looking Ahead
Indonesia’s government remains hopeful that Apple will take the necessary steps to fulfill its investment obligations. The Ministry’s push for face-to-face negotiations underscores the importance of resolving these issues to foster a mutually beneficial relationship.
While Apple’s current proposal marks a step toward collaboration, achieving compliance with local regulations and addressing fairness concerns will be critical in securing a foothold in Indonesia’s lucrative market. As the world’s fourth-largest smartphone market, Indonesia offers significant opportunities for Apple—provided the company can align its investment strategy with local expectations.
(Becky)
