Apple Investment Agreement In Indonesia Expected To Be Completed In One Or Two Weeks

JAKARTA - The Indonesian government is currently close to reaching an agreement with the technology giant Apple regarding its investment, to lift the ban on the sale of the iPhone 16 in the country.

In a recent interview with Bloomberg Television in Davos, Switzerland, the Minister of Investment and Downstreaming as well as the Head of the Investment Coordinating Board (BKPM) Rosan Roeslani hoped to complete the agreement soon.

"Hopefully in a week or two this problem can be resolved", Rosan told Reuters.

Previously, the government banned the sale of all iPhone 16 series devices in Indonesia, because Apple failed to meet the requirements of the Domestic Component Level (TKDN) of 40 percent.

Apple's initial bid of 10 million US dollars and then 100 million US dollars was rejected by the government because it was deemed inadequate. The government then asked Apple to invest USD 1 billion (IDR 16.1 trillion).

In a previous report, with this investment value, Apple plans to build a smartphone component manufacturing plant and other products. Including the construction of manufacturing facilities in Indonesia, including the AirTag production plant on Batam Island.

The factory in Batam is projected to employ around 1,000 workers in the early stages and is expected to meet 20% of global AirTag production in the future.

This location was chosen because of its status as a free trade area, which provides tax exemptions and import duties.

In addition, additional investments will be allocated for the construction of manufacturing facilities in Bandung that will produce other accessories as well as the expansion of Apple's developer academy in Indonesia.