ASIATODAY.ID, JAKARTA – The Ministry of Industry of the Republic of Indonesia has succeeded in encouraging Apple to establish a research and development (R&D) center in Indonesia.
This facility is part of the investment commitment agreement for the 2023-2029 period between the Ministry of Industry and Apple. This program is a form of realization of Apple’s commitment to choosing an innovation investment scheme to be able to issue Domestic Component Level certificates for its products.
The construction of Apple’s R&D facilities in Indonesia will make Indonesia the second country in the world and the first in Asia to have Apple facilities.
“So far, Apple has only built R&D facilities in America, only one country outside America, namely Brazil. We will be the second country outside America and the first country in Asia to have Apple R&D,” said the Indonesian Minister of Industry, Agus Gumiwang Kartasasmita, quoted on Friday, February 28 2025.
Apple’s R&D facilities in Indonesia will certainly have a positive impact not only on the national industrial sector, but also on strengthening research and innovation capacity in the country. Apart from that, this program will increase job creation, as well as provide opportunities and support experts at Indonesian universities and students to be directly involved in the research and development process.
Agus said that the reason why Apple built R&D facilities in Indonesia was because it saw that Indonesia’s human resources were ready to support the running of Apple’s R&D facilities. The establishment of the R&D Center will also involve 15 universities in Indonesia, including ITB, UI, UGM, and ITS which are members of the Indonesia Chip Design Collaborative Center (ICDEC).
Apple R&D Center Indonesia will later focus on developing human resources, which includes software development in the health sector, Internet of Things (IoT), artificial intelligence (AI).
In the MoU, it is also agreed on the activities that will be carried out by Apple, including the establishment of the Apple Software Innovation and Technology Institute, the establishment of the Apple Professional Developer Academy, and the sustainability of the Apple Academy.
Agus also explained the function of the Apple Professional Academy which is part of this commitment.
“In this facility, experts, both Apple Academy graduates and those from outside, will be gathered to carry out technology development activities, and to improve skills for experts who want to add new skills,” he said.
In addition, Apple has agreed to commit to increasing investment in order to fulfill sanctions due to not carrying out its innovation commitments in the previous period properly, as regulated in the Minister of Industry Regulation Number 29 of 2017 concerning Provisions and Procedures for Calculating the Value of Domestic Component Levels for Cellular Telephone, Handheld Computer and Tablet Computer Products.
This additional investment was achieved by bringing their Global Value Chain (GVC) company, namely ICT Luxshare, to invest in producing AirTag accessories in a factory being built in Batam with an investment of US$ 150 million, and will make Indonesia a supplier for 65% of AirTags on the world market. In this case, Apple is committed that AirTag battery components will be sourced from domestic manufacturers.
The completion of negotiations between the Ministry of Industry and Apple was stated in the signing of a Memorandum of Understanding (MoU) for investment commitments for the 2023-2029 period between the Ministry of Industry and Apple on Wednesday, February 26 2025.
The Ministry of Industry’s firmness in negotiating with Apple shows the important role of the Indonesian government in creating thousands of new jobs, encouraging the development of the technology startup ecosystem, and making a significant contribution to increasing Indonesia’s competitiveness on the global stage. (AT Network)
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