Jakarta, Indonesia Sentinel — The Indonesian Ministry of Industry has responded to interest from U.S.-based Apple Inc. to establish a factory in Bandung, West Java, potentially marking a significant step for the tech giant in Southeast Asia.
Deputy Minister of Industry Faisol Riza stated that discussions regarding Apple’s investment, estimated at $10 million, are still in the preliminary stages and will require further detail before finalizing any agreements.
“We have been in contact, and discussions will continue in greater detail,” Riza told the media on Wednesday, November 6, 2024. He mentioned that Apple’s interest in building a factory in Indonesia is not new. The company has previously expressed similar intentions, but these commitments have yet to materialize.
“Apple has shown interest before, but it did not fully commit. We hope this recent plan can come to fruition soon,” Riza added, expressing optimism that this latest proposal might finally lead to tangible developments in Indonesia’s tech sector.
If Apple’s proposal succeeds, the company’s investment could have a significant impact on the local economy and technology industry, particularly by creating jobs and fostering partnerships with local suppliers. Riza noted that Apple products are not yet officially sold in Indonesia, but the government is reviewing the necessary conditions to change that.
A formal announcement from Industry Minister Agus Gumiwang Kartasasmita is expected soon, as the Ministry examines the logistics and regulatory requirements needed to facilitate Apple’s entry.
One primary obstacle has been the local content requirement, or Tingkat Komponen Dalam Negeri (TKDN). The Indonesian government requires a certain percentage of domestically sourced components for electronic devices sold within its borders. Currently, the iPhone 16 series cannot be officially sold in Indonesia due to non-compliance with TKDN standards, although Apple is expected to meet this requirement if the factory proposal moves forward.
According to Bloomberg, Apple has proposed a nearly $10 million investment to establish the Bandung facility. This plant would focus on producing accessories and components for Apple devices, with a likely emphasis on collaborating with local suppliers to meet TKDN standards.
An anonymous source close to the discussions confirmed that Apple has submitted its investment proposal to the Ministry of Industry and is awaiting approval. If approved, Apple’s factory could pave the way for the iPhone 16 series to be sold officially in Indonesia and set a precedent for foreign tech investment in the country.
Apple’s prospective entry into the Indonesian market not only offers a potential boost to the local workforce but could also drive the nation’s tech industry forward. The opening of an Apple facility in Bandung would likely create substantial employment opportunities in the region and establish Bandung as a key technology hub in Indonesia.
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In a related update, Secretary General of the Ministry of Industry, Eko S.A. Cahyanto, shared that Apple has requested an in-person meeting with Minister Agus Gumiwang Kartasasminta to discuss the investment proposal in more detail. This development indicates Apple’s strong intent to move forward, provided that regulatory and logistical hurdles can be addressed.
As Indonesia pushes for greater technology investments and local manufacturing, Apple’s potential factory in Bandung could represent a major milestone. The collaboration could also encourage other tech giants to consider Indonesia as a strategic production location, furthering the country’s goal of becoming a hub for high-tech manufacturing in Southeast Asia.
(Becky)
