NAIROBI, Kenya- Apple’s ambitions in Indonesia have hit a roadblock, as the Indonesian government has officially turned down the tech giant’s $100 million investment proposal for 2024-2026.
The decision, announced by Industry Minister Agus Gumiwang Kartasasmita on Monday, cites concerns over fairness and lack of significant benefits to the local economy.
At the heart of the rejection is a sense of imbalance. According to Minister Agus, Apple’s proposed investment fails to deliver sufficient added value in terms of job creation or boosting Indonesia’s revenue.
The government views the offer as uncompetitive, especially when compared to other tech giants that have established manufacturing operations in the country.
“The Ministry of Industry considers that the proposal submitted by Apple does not meet the aspects of fairness,” Agus stated.
The minister also highlighted a lingering issue: Apple’s incomplete commitment of $10 million for the 2020-2023 investment period. This shortfall has further strained relations, prompting the government to demand greater accountability before moving forward.
Despite the rejection, the Indonesian government isn’t closing the door entirely. Talks are set to continue, with officials inviting Apple representatives to revisit their investment proposal.
The stakes are high for both sides: without government approval, Apple’s latest products, including the upcoming iPhone 16 series, could face certification delays, jeopardizing their official launch in one of Southeast Asia’s largest markets.
The government has emphasized its willingness to collaborate, aiming to strike a deal that aligns with national interests while enabling Apple to expand its presence in the region.
This standoff underscores a broader trend in Indonesia’s approach to foreign investment. As the country positions itself as a regional tech hub, it’s raising the bar for multinational corporations to contribute meaningfully to the local economy.
For Apple, the challenge lies in recalibrating its strategy to align with Indonesia’s expectations. For Indonesia, this is a chance to assert its economic priorities without compromising on partnerships with global players.
