Apple Commits to New $160 Million Investment in Indonesia
JAKARTA, investortrust.id – Apple Inc. has agreed to invest $160 million in Indonesia, strengthening its presence in the country through innovation and research. The investment will be directed toward research and development (R&D), including the expansion of Apple Academy and the establishment of new innovation centers.
Minister of Industry Agus Gumiwang Kartasasmita announced that the U.S. technology giant would make this investment under a “Scheme Three” model, which mandates foreign companies to contribute to local innovation through R&D initiatives.
Apple Strengthens R&D and Innovation in Indonesia
“This investment, which follows Scheme Three, is valued at $160 million and will be provided in hard cash,” Agus said during a press conference at the Ministry of Industry office in South Jakarta on Wednesday, Feb. 26, 2025.
The agreement, formalized in a memorandum of understanding (MoU) between the Ministry of Industry and Apple, outlines several R&D activities, including the continuation of Apple Academy. Additionally, Apple will establish two new centers: the Apple Software Innovation and Technology Institute and the Apple Professional Developer Academy.
“These two initiatives—the Software Innovation and Technology Institute and the Professional Developer Academy—are integral parts of Apple’s investment commitment, and we have finalized the agreement,” Agus stated.
The $160 million investment will be implemented over three years, marking the beginning of a new investment cycle for Apple in Indonesia. “This amount represents the minimum investment, and we have already assessed the potential impact of the agreed activities,” he added.
Expanding Apple’s Manufacturing Footprint
Beyond R&D, Apple is also expanding its manufacturing operations in Indonesia. As part of its commitment to comply with local content regulations, the company has settled its outstanding investment obligation of $10 million (Rp 163 billion) for the period 2020–2023. In addition, Apple is bringing two global value chain companies to invest in Indonesia.
One of these companies, ICT Luxshare, is investing $150 million (Rp 2.4 trillion) to build a factory in Batam, which will manufacture AirTag accessories. Once operational, the facility will supply 65% of the global AirTag market. Apple has also pledged that the AirTag batteries will be sourced from domestic manufacturers.
“In response to the penalty, Apple is bringing companies from its global value chain to invest in Indonesia,” Agus explained. “The investment in ICT Luxshare carries strong export potential, and Apple has committed to ensuring that all AirTag batteries will be supplied by local industry.”
Additionally, Long Harmony in Bandung will set up a production line to manufacture mesh fabric for AirPods Max, further integrating Indonesian manufacturers into Apple’s global supply chain.
“Indonesia has successfully positioned itself within Apple’s global value chain with the ICT Luxshare investment in Batam and the Long Harmony production facility in Bandung,” Agus stated.
Apple’s Growing Role in Indonesia
With these commitments, Apple is significantly expanding its footprint in Indonesia through both manufacturing and R&D. The combination of the $160 million innovation investment and $150 million in manufacturing investment—totaling over $310 million (Rp 4.9 trillion)—demonstrates Apple’s long-term commitment to the Indonesian market.
These initiatives not only strengthen Apple's compliance with local regulations but also enhance Indonesia’s position in the global tech supply chain, paving the way for increased innovation and export opportunities.