The Ministry of Industry has succeeded in encouraging Apple to establish a research and development (R&D) center as part of the 2023–2029 investment commitment agreement between Kemenperin and Apple. The program is one of the ways Apple is fulfilling its commitment after choosing the innovation investment scheme to obtain Domestic Component Level (TKDN) certificates for its products.
Building Apple's R&D facility in Indonesia will make Indonesia the second country in the world and the first in Asia to have such an Apple facility. “Until now, Apple has only built R&D facilities in America, with only one country outside America, namely Brazil. We will be the second country outside America and the first country in Asia with Apple R&D,” Minister of Industry Agus Gumiwang Kartasasmita said at a press conference in Jakarta on Wednesday (26/2).
Apple's R&D facility in Indonesia will certainly have a positive impact not only on the national industrial sector, but also in strengthening domestic research and innovation capacity. In addition, the program will add job creation and give experts at Indonesian universities and students the opportunity and support to be directly involved in research and development.
The Minister of Industry said the reason Apple is building an R&D facility in Indonesia is that it sees Indonesia's human resources as ready to support the operation of an Apple R&D facility. 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 focus on human resource (HR) development, including software development in health, the Internet of Things (IoT) and artificial intelligence (AI).
The MoU also sets out the activities Apple will carry out, including establishing the Apple Software Innovation and Technology Institute, establishing the Apple Professional Developer Academy, and continuing the Apple Academy.
The Minister of Industry also explained the function of the Apple Professional Academy, which is part of the commitment. “At this facility, experts, both graduates of the Apple Academy and others, will be brought together to carry out technology development activities, and to upskill experts who want to acquire new skills,” he said.
In addition, Apple has agreed to commit additional investment to fulfill sanctions for not properly carrying out its innovation commitment in the previous period, as regulated in Minister of Industry Regulation No. 29 of 2017 on Provisions and Procedures for Calculating the Domestic Component Level of Mobile Phones, Handheld Computers and Tablet Computers.
The additional investment is being made by bringing in a company from their Global Value Chain (GVC), ICT Luxshare, to invest in producing AirTag accessories at a factory under construction in Batam with an investment of USD 150 million, which will make Indonesia the supplier of 65% of AirTags on the world market. Apple has committed that AirTag battery components will be sourced from domestic manufacturers.
The conclusion of negotiations between Kemenperin and Apple was set out in the signing of a Memorandum of Understanding (MoU) on the investment commitment for 2023–2029 between Kemenperin and Apple on Wednesday (26/2).
Kemenperin's firmness in negotiating with Apple shows the important role of the Indonesian government in creating thousands of new jobs, encouraging the growth of the tech startup ecosystem, and making a significant contribution to increasing Indonesia's competitiveness on the global stage.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia