The agreement also outlines a roadmap for Apple’s manufacturing plans in Indonesia. This roadmap is part of the Memorandum of Understanding (MoU) signed by the Indonesian government and Apple. One of the critical aspects of this MoU includes addressing the penalties related to Apple’s investments from 2020 to 2023, while also ensuring that future innovation investments are met. The total value of Apple’s investments in Indonesia through 2028 is expected to reach $335 million.

Furthermore, the Indonesian government is exploring additional opportunities for collaboration with Apple. The Ministry of Investment is currently in talks with the tech company regarding a potential $1 billion investment in a factory in Batam, aimed at producing AirTags. If the deal progresses as expected, the Batam facility will supply 65% of the global demand for AirTags, signaling a significant leap in Apple’s supply chain capabilities in Southeast Asia.

Indonesia’s role in Apple’s global supply chain is expected to expand significantly with these investments. As a comparison, neighboring countries like Thailand and Vietnam already have numerous vendors in Apple’s supply network, with Apple facilities in both nations. This new investment in Batam mirrors Apple’s strategy in these countries and is expected to generate around 2,000 local jobs once the facility becomes operational in 2026.

The Indonesian government views this partnership as a critical step in bolstering its manufacturing sector and attracting more foreign investment. The commitment from Apple is seen as a positive sign for the country’s growing tech industry and its broader efforts to strengthen its position in the global economy. With these investments, Indonesia hopes to become a more integral part of the global supply chains of major tech companies like Apple. (Uki Ruknuddin)

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