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Apple’s recent proposal to invest $100 million in Indonesia has been met with disappointment from the country’s government. According to Industry Minister Agus Gumiwang Kartasasmita, the proposed amount does not align with the fairness principles that Jakarta expects in terms of investment size and commitment. The official pointed out that while Apple’s investment in Indonesia is relatively modest, the company has made significantly larger investments in other countries, particularly in Vietnam.
For context, Apple’s investment in Vietnam stands at a substantial IDR 244 trillion (roughly $15 billion), which has helped establish large manufacturing facilities in the country. Despite this, Apple’s sales in Vietnam remain relatively low, with only about 1.5 million units sold. This stark contrast to its performance in Indonesia, where Apple sells around 2.5 million units, has raised concerns within the Indonesian government about the disparity in investment.
The Indonesian government has made it clear that it expects Apple to reconsider its investment levels to ensure a more equitable contribution to the local economy. Currently, Apple’s investment in Indonesia has primarily been directed towards the establishment of developer academies, which amounts to around IDR 1.5 trillion. This is seen as insufficient compared to its broader manufacturing investments in other regions, especially when considering the volume of sales in the country.
Given these concerns, Indonesia has signaled that further negotiations are necessary before it will consider lifting the ban on domestic sales of the iPhone 16. The government is seeking a more substantial and balanced approach that not only aligns with Apple’s market presence in the country but also provides long-term benefits for the Indonesian economy.
