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Tag: Indonesia

  • Indonesia’s e-commerce market tipped to exceed $46 billion

    Indonesia’s e-commerce market tipped to exceed $46 billion

    E-commerce transaction values are growing steadily in Indonesia, with the market size up from $18.2 billion in 2020 to $40.8 billion last year.

    According to data and analytics company GlobalData, this represents a compound annual growth rate (CAGR) of 22.3 per cent.

    With such a growth pace, GlobalData forecasts the Indonesian e-commerce market to reach $46.6 billion in value this year.

    Government initiatives to improve digital infrastructure and online transaction security have contributed to this market growth, the research house reports.

    To protect traditional businesses and online marketplaces, and to reduce online fraud, the Indonesian Ministry of Trade issued a ban on social media e-commerce transactions in 2023, improving consumer confidence.

    GlobalData’s 2024 Financial Services Consumer Survey found that alternate payment methods held a market share of 49.3 per cent in the e-commerce payment landscape due to their convenience, speed, and security.

    Mobile wallets such as GoPay and Dana have gained popularity among consumers, with GoPay seeing 30 million downloads last July.

    The survey found that bank transfers held a 30.2 percent market share, particularly for high-value transactions, attributed to perceived security and the direct nature of the process.

    The use of cards for e-commerce transactions was just 7.5 percent, according to the survey.

    A preference for credit cards was seen due to the benefits offered, such as reward programs, cashback, interest-free installment payment options, and discounts.

    “Looking ahead, Indonesia’s e-commerce market value is projected to grow at CAGR of 12 per cent from 2025 to 2029. The growth will be driven by several key trends, including the continued expansion of digital payment solutions, the increasing penetration of smartphones and internet connectivity, and the rising demand for convenient and secure online shopping experiences,” said GlobalData banking and payments analyst Siddharth Das.

  • Indonesian coffee chain Fore Coffee’s IPO oversubscribed by 200 times

    Indonesian coffee chain Fore Coffee’s IPO oversubscribed by 200 times

    Indonesian coffee chain Fore Coffee made its trading debut on the Indonesia Stock Exchange (IDX), following a heavily oversubscribed initial public offering that attracted more than 114,000 investors.

    The East Ventures-incubated company priced its IPO at US$0.012 (RP188) per share, issuing 1.88 billion new shares to raise approximately $22.3 million (RP353.44 billion) in fresh capital.

    Fore Coffee plans to allocate around 75 percent of the funds to its domestic expansion, with a target of 140 new outlets over the next two years.

    An estimated $3.8 million (RP60 billion) will be invested in launching a new doughnut concept, while the remaining $1.1 million (RP18 billion) will go towards working capital.

    Wilson Cuaca, president and chairman of Fore Coffee, and co-founder and managing partner at East Ventures, said the strong response to the IPO demonstrates the appeal of homegrown startups to public investors.

    “The counter-intuitive decision to proceed with the IPO during the lowest IDX Composite index since the pandemic paid off,” Cuaca said.

    Mandiri Sekuritas and Henan Putihrai Sekuritas acted as joint lead underwriters and intermediaries for the offering.

  • iPhone 16 series to be available in Indonesia next month

    iPhone 16 series to be available in Indonesia next month

    Teach giant Apple announced that the iPhone 16 will be available in Indonesia from April 11, indicating the sales ban in Southeast Asia’s biggest economy had been lifted.

    The government in October prohibited the marketing and sale of the model over the US tech titan’s failure to meet regulation requiring 40% of phones be made from local parts.

    However, Apple struck a deal with the Indonesian government last month to invest in the country of 280 million after months of deadlock.

    “Today, Apple announces that all iPhone 16 series… will be available starting from Friday, April 11,” the company said in a statement on Wednesday.

    The industry ministry said this month it had approved local certificates for more than a dozen Apple products.

    Last week, The Ministry of Communication and Digital Affairs said Apple has also obtained a certificate needed for all telecommunication devices with transmission.

    Jakarta rejected a $100 million investment proposal from Apple in November, saying it lacked the “fairness” required by the government.

    Apple later agreed to invest $150 million in building two facilities — one in Bandung in West Java province to produce accessories, and another in Batam for AirTags.

    Industry Minister Agus Gumiwang Kartasasmita said last month that Apple had also committed to building a semiconductor research and development center in Indonesia, calling it a “first of its kind in Asia”.

    Despite the ban on iPhone sales in Indonesia, the government had allowed the devices to be brought in if they were not being traded commercially.

    Indonesia has also banned the sale of Google Pixel phones for failing to meet the 40% local parts requirement.

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  • Scaling Infrastructure to Support AI Growth in Japan, Indonesia, and Singapore

    Scaling Infrastructure to Support AI Growth in Japan, Indonesia, and Singapore

    Nationally, projections indicate that AI investments in APAC are expected to reach USD 110 billion by 2028, growing at a compound annual growth rate (CAGR) of 24.0% from 2023 to 2028.

    As AI technologies become integral to various sectors, the demand for scalable infrastructure has intensified. Organizations are increasingly investing in compute and storage hardware to facilitate AI deployments, with spending reaching USD 31.8 billion in the first half of 2024—a 37% year-over-year (YoY) increase. This trend highlights the necessity for robust infrastructure capable of supporting complex AI workloads.

    Developing AI-ready infrastructure in APAC presents unique challenges. Macroeconomic factors such as rising interest rates, supply chain constraints, and escalating construction material costs have made it increasingly difficult to bridge the funding gap necessary for building new data center capacity. Securing essential resources like land, power, and water supplies further complicates these efforts.

    As AI adoption accelerates worldwide, the need for powerful infrastructure to support AI-driven applications is becoming more pressing. Recognizing this demand, SoftBank has announced plans to repurpose a former Sharp LCD panel plant in Osaka, Japan, into a large-scale data center dedicated to AI operations. Developed in collaboration with OpenAI, the facility is expected to begin operations in 2026, with a robust power capacity of 150 megawatts, making it one of the largest AI-focused data centers in Japan.

    SoftBank’s decision to convert the defunct LCD panel plant into a data center aligns with its broader vision of positioning Japan as a hub for AI innovation. With an estimated initial investment of JPY 100 billion (USD 677.05 million) and a potential total investment nearing JPY 1 trillion yen (USD 6.77 billion), the project highlights the telecom giant’s commitment to scaling AI infrastructure.

    AI development requires immense computational power, with models like OpenAI’s GPT series relying on extensive data processing, high-performance graphics processing units (GPUs), and robust networking infrastructure. The Osaka data center is designed to meet these demands by offering a 150-megawatt power capacity to support high-density computing environments optimized for AI model training and inference. It will also enable businesses to leverage AI models tailored to their industry-specific needs, fostering AI adoption in Japan’s corporate sector. Additionally, given the growing concerns about AI’s energy consumption, the facility may incorporate advanced cooling and power efficiency solutions to ensure sustainable operations.

    Furthermore, Elon Musk’s xAI and Nvidia have joined the AI Infrastructure Partnership (AIP), a multibillion-dollar investment fund backed by BlackRock, Microsoft, and Abu Dhabi’s MGX, with an initial fundraising target of USD 30 billion and plans to secure up to USD 100 billion, including debt financing. This collaboration is driven by the growing need to scale AI infrastructure, as the development and deployment of generative AI (GenAI) models requires immense computational power and energy resources.

    According to Nvidia CEO, Jensen Huang, the demand for AI infrastructure is surging, with data centers and energy projects struggling to keep pace.

    “The global buildout of AI infrastructure will benefit every company and country that wants to achieve economic growth and unlock solutions to the world’s greatest challenges.”

    AI models consume far more power than previous technological innovations, prompting concerns over energy sustainability. According to the International Energy Agency, data centers’ global electricity consumption could surpass 1,000 terawatt-hours by 2026 (more than twice the amount used in 2022).

    The race to scale AI infrastructure has intensified, with Microsoft alone pledging USD 80 billion in capital expenditures (CapEx) this fiscal year to expand its data center footprint. This move follows the launch of SoftBank and OpenAI’s Stargate Project, which aims to spend up to USD 500 billion on AI infrastructure development over the next four years.

    Indonesia’s commitment to AI development took a significant step forward with the launch of its National Strategy for Artificial Intelligence (Strategi Nasional Kecerdasan Artifisial) in 2020. This long-term initiative, spanning 2020 to 2045, is designed to position Indonesia as a regional leader in AI innovation and application. President Joko Widodo’s strong stance on AI’s transformative potential—emphasizing that whichever country “controls AI can potentially control the world”—has driven the government’s proactive approach to fostering AI growth.

    A core element of Indonesia’s AI strategy is its emphasis on infrastructure development to support AI innovation and adoption across multiple sectors. Recognizing that AI thrives on robust digital infrastructure, the government has accelerated efforts to expand high-speed internet access, cloud computing capabilities, and data center availability. The Making Indonesia 4.0 initiative, which serves as a broader framework for the country’s digital transformation, integrates AI infrastructure expansion with industrial automation, biotechnology, and smart manufacturing. Furthermore, Indonesia’s push to roll out 5G networks, particularly in major urban centers, is playing a crucial role in facilitating AI-driven solutions such as smart cities, autonomous systems, and advanced analytics in governance and business.

    The Bukit Algoritma (Algorithm Hill) project in Sukabumi, West Java, further exemplifies Indonesia’s commitment to AI-driven infrastructure. This 888-hectare technology hub, inspired by Silicon Valley, aims to be a center for research and innovation in AI, quantum computing, neuroscience, and digital technology.

    Indonesia’s AI strategy has also facilitated partnerships between the public and private sectors, accelerating the integration of AI into real-world applications. The Jakarta Smart City initiative, which deploys AI-powered solutions for urban governance, mobility, and security, showcases Indonesia’s ability to leverage AI for improved public services.

    Singapore’s National AI Strategy 2.0 (NAIS 2.0), launched on December 4, 2023, has placed infrastructure development at the heart of its vision for AI-driven growth. Recognizing the critical role of high-performance computing (HPC), data centers, and cloud ecosystems, NAIS 2.0 lays the foundation for a sustainable and scalable AI infrastructure. A prime example of this initiative is the Singapore Cloud Region, which features cutting-edge, liquid-cooled, high-density data centers equipped with NVIDIA HGX H100 and L40S clusters.

    This advanced setup ensures that businesses and researchers have access to powerful, energy-efficient AI computing resources. Additionally, NAIS 2.0 aligns with Singapore’s goal of becoming a regional AI hub, emphasizing cross-border connectivity and AI-driven collaboration across Southeast Asia. With ST Telemedia Global Data Centres and Sustainable Metal Cloud (SMC) at the forefront of this infrastructure push, Singapore is not only expanding AI accessibility but also ensuring its AI ecosystem is cost-effective, energy-efficient, and globally competitive.

    Beyond Japanese, Indonesian, and Singaporean initiatives, the ASEAN Guideline on AI Governance and Ethics and the establishment of the ASEAN Working Group on AI (WG-AI), mark a significant step toward fostering cross-border collaboration and infrastructure development to support AI growth.

    The ASEAN Guide on AI Governance and Ethics, launched during the fourth ASEAN Digital Ministers’ Meeting on February 2, 2024, offers a structured framework to help organizations navigate AI integration while balancing innovation and regulation. The guide emphasizes the necessity of financial and capacity support for businesses, reinforcing ASEAN’s commitment to establishing a robust AI ecosystem.

    Complementing this initiative, the newly formed WG-AI aims to facilitate regional cooperation, ensuring interoperability among national AI frameworks and enabling a unified approach to AI governance.

    As AI adoption accelerates in Japan, Indonesia, and Singapore, scaling infrastructure is essential to sustain this momentum. Nations that foster collaboration between governments, tech firms, and research institutions will be well-equipped to build resilient, future-ready ecosystems that drive innovation and economic growth in the AI era.

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  • Indonesia’s Fore Coffee launches IPO to fund expansion

    Indonesia’s Fore Coffee launches IPO to fund expansion

    Indonesian coffee chain Fore, backed by East Ventures, has launched an initial public offering (IPO) to expand domestically and internationally.

    The company said it is capitalizing on the expanding middle class, which is driving demand for premium coffee and lifestyle products.

    Fore operates a hybrid business model, combining quick-service outlets optimized for pick-up and delivery with traditional sit-down cafes.

    The IPO offers up to 1.88 billion new shares—equivalent to 21.08 percent of the company’s enlarged capital. Shares are priced between US$0.01 (IDR160) and $0.02 (IDR202), with a potential fundraising target of $22.98 million (IDR379.76 billion).

    Following regulatory approval, the IPO’s effective date is March 25. Public trading is scheduled from March 26 to April 9. Shares are expected to be electronically distributed on April 10. The newly issued shares will carry equal rights to existing ones.

    Mandiri Sekuritas and Henan Putihrai Sekuritas are underwriting the offering.

    Last year, Fore Coffee opened 61 new locations, bringing its total store count to 230. CEO Vico Lomar said the company plans to open 60 more stores this year, including a second Singapore location.

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  • GoTo posts first full-year underlying profit

    GoTo posts first full-year underlying profit

    Indonesia’s biggest tech firm PT GoTo Gojek Tokopedia forecast a sharp increase in its underlying earnings for 2025 on Wednesday, and also posted its first ever full-year underlying profit.

    GoTo, which offers ride hailing, food deliveries, logistics and financial services, also forecast a surge in its core earnings, or adjusted EBITDA, the company’s key measure of profitability.

    “We saw a significant increase in our user numbers throughout the year and expect this to continue into 2025,” said Patrick Walujo, GoTo Group CEO.

    The tech firm now expects its adjusted EBITDA for 2025 to be in the range of 1.4 trillion rupiah (US$85.16 million) to 1.6 trillion rupiah.

    It’s a significant increase from GoTo’s underlying profit of 327 billion rupiah for 2024, swinging from a loss of 3.670 trillion rupiah last year.

    The firm’s financial technology segment, whose earnings jumped 70 per cent last year, is expected to expand further in 2025 as the user base for its GoPay app and its loan book grows, the company said.

    GoTo, which is backed by Japan’s SoftBank Group and Singapore’s sovereign wealth fund GIC, had reportedly been involved in merger talks with Southeast Asian ride-hailing and food delivery company Grab.

    But GoTo said in a filing last month it had not engaged in talks regarding a potential merger with any party, noting media reports involving Grab.

    In an interview with the Financial Times, GoTo CEO Walujo expressed openness to a potential deal.

    “I will always be open to anything that is enhancing our shareholders’ return . . . in the long term,” Walujo said.

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  • Indonesia to convert waste into fuel, power in 30 big cities

    Indonesia to convert waste into fuel, power in 30 big cities

    Indonesian Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said that the government is targeting to process waste into fuel and electricity in 30 big cities by 2029.

    He added that each city can produce around 20 megawatts of electricity. The products obtained from waste processing will not be limited to electricity but also include fuel oil, which will be produced using pyrolysis technology.

    According to the official, waste can be converted into electricity and fuel oil through integrated waste processing with the help of technology.

    Earlier, the Ministry of Environment informed that the acceleration of waste utilization into energy is expected to support waste management efforts in regions, supported by new regulations regarding electrification.

    The government is unifying three presidential regulations related to waste management to support the utilization of waste to produce electrical energy through waste power plants.

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  • Indosat Reports Strong Growth in 2024

    Indosat Reports Strong Growth in 2024

    Total revenue increased by 9.1% to IDR 55.9 trillion, driven by improvements in customer quality and contributions from all business lines. Cellular revenue grew by 7.5% due to increased revenue in the data and interconnection sector, while multimedia, data communication, and internet (MIDI) revenue rose by 23.4%, supported by increased revenue from IT services.

    EBITDA also grew by 10.2%, totaling IDR 26.4 trillion, demonstrating an EBITDA margin of 47.2% and Indosat’s efficiency in converting revenue into earnings. Profit for the period attributable to owners of the parent increased by 38.1%, totaling IDR 4.916 trillion, reinforcing the company’s financial health and ability to deliver returns to stakeholders.

    Vikram Sinha, President Director and CEO of Indosat, mentioned, “2024 was a challenging year. Despite this, we managed to secure a strong performance as a commitment to continue delivering value to our stakeholders. This strong financial and operational performance also underscores Indosat’s commitment to continuously drive the advancement in the telecommunications industry ecosystem in Indonesia.”

    Throughout 2024, data traffic increased by 12.2% year-over-year (YoY), reflecting the growing demand for Indosat’s services. The company expanded its network infrastructure by increasing the number of 4G BTS to 196,000 to enhance service quality for customers. This led to a 6.6% rise in mobile average revenue per user (ARPU), totaling nearly IDR 40,000 and showcasing the success of Indosat’s go-to-market strategy.

    In the final quarter of 2024, Indosat relaunched its postpaid service under the IM3 Platinum brand, integrating artificial intelligence (AI) to deliver a premium customer experience. The company is also embedding AI into its network operations through a partnership with Nokia, which aims to expand its 4G and 5G networks and provide smarter and more efficient connectivity.

    Indosat is also collaborating with UiPath to empower 100,000 Indonesians with enterprise automation skills by 2027, aligning with its mission to drive digital transformation and foster an AI-ready workforce in Indonesia.

    The company’s capital expenditure (CapEx) in 2024 totaled IDR 9.937 trillion. Indosat will focus on enhancing cellular networks to support the growing demand for AI-powered digital services.

    “By embedding AI across our operations and fostering collaborations rooted in the spirit of mutual cooperation, we are accelerating towards Indosat’s larger purpose of empowering Indonesia,” concluded Sinha.

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  • Indosat, ZTE Enhance Indonesia’s Connectivity with Advanced Microwave Technology

    Indosat, ZTE Enhance Indonesia’s Connectivity with Advanced Microwave Technology

    Utilizing ZTE’s microwave technology, the partnership aims to provide reliable, high-speed communication to remote islands and rural regions, granting more Indonesians access to IOH’s 4G network.

    Indonesia faces significant challenges in building communication infrastructure due to its rugged terrain and high costs. Traditional wired communication solutions often fall short, leaving many areas disconnected and limiting economic and social growth.

    To address this, Indosat and ZTE have deployed more than 550 ultra-capacity backbone microwave links nationwide, connecting nearly 80% of major cities and remote regions. ZTE’s innovative technology, designed for Indonesia’s specific needs, ensures long-distance, high-capacity transmission, providing previously isolated communities with reliable connectivity.

    Kevin Chen, Sales Director of PT., ZTE Indonesia, said, “ZTE are committed to seizing strategic opportunities in digitalization, intelligence, and low-carbon development. ZTE microwave backbone connects ZTE, IOH, and Indonesian residents together, [and] will explore more new possibilities in communication ways, contributing to the digital economic growth of Indonesia and the global community.”

    The solution incorporates advanced features tailored to Indonesia’s environmental conditions. ZTE’s multi-frequency Ultra Broadband Antennas (UBA) facilitate flexible frequency selection, reducing infrastructure costs. Customized branching units enhance efficiency and performance, while durable equipment withstands harsh weather conditions such as heavy rain, strong winds, and corrosion.

    Additionally, the integration of 4T4R modem boards and energy-saving technology ensures rapid deployment with minimal resources. The system’s scalable design supports future upgrades, enabling up to eight times the capacity and extended coverage to new areas.

    Indosat’s subscriber base has seen substantial growth, especially in remote regions, due to a strategic initiative that has expanded backhaul capacity in areas like Sumatra and Kalimantan to 2-3 Gbps, with peak speeds reaching up to 6 Gbps. This improved connectivity enables residents to access real-time information, online education, and digital entertainment seamlessly. Moreover, the initiative has spurred local economic development by generating employment opportunities, enhancing tourism, and encouraging knowledge exchange, while also driving progress in healthcare and education.

    Indosat and ZTE plan to strengthen their partnership to expand network coverage across Indonesia, focusing on improved communication infrastructure. Their joint efforts aim to enhance product capabilities, lower costs, and deliver innovative solutions to empower Indonesians in the digital age.

    Desmond Cheung, Director and Chief Technology Officer, Indosat Ooredoo Hutchison, commented, “This partnership with ZTE reflects our dedication to connecting communities across the nation, regardless of geographic challenges. By deploying advanced technology, we are not only improving digital experience but also unlocking opportunities for economic and social progress, creating a brighter digital future for Indonesia.”

  • Indonesia raises retirement age to 59

    Indonesia raises retirement age to 59

    Indonesia will raise the retirement age for workers to 59, effective this year, in accordance with a government regulation on the Implementation of the Pension Guarantee Program.

    A regulation issued in 2015 set the retirement age at 56, with a provision for gradual increases. Starting Jan. 1, 2019, the retirement age was raised to 57, with plans for it to increase by one year every three years until reaching a maximum of 65.

    As outlined by the regulation, the retirement age will increase to 59 beginning in January 2025 and remain in effect until 2028.

    The updated retirement age also serves as a reference for workers registered with the Employment Social Security Administration Agency (BPJS TK) to claim their pension benefits.

    The gradual increase reflects Indonesia’s efforts to address demographic and economic changes, ensuring the sustainability of the pension system while promoting the financial security of the country’s aging workforce.

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  • Indonesia says 2024 was hottest year on record

    Indonesia says 2024 was hottest year on record

    Indonesia experienced its hottest year on record in 2024, the country’s weather agency said Friday, matching several other nations which have reported similar rises in temperature.

    Indonesia still relies enormously on fossil fuel energy — which scientists say is a leading cause of global warming — and is listed as one of the top greenhouse gas emitters in the world.

    The average air temperature in 2024 was 27.5 degrees Celsius (81.5 Fahrenheit), some 0.8 degrees Celsius warmer than between 1991 and 2020, the country’s meteorology, climatology and geophysics agency (BMKG) posted on its website Friday.

    It said the data was obtained from 113 monitoring posts across the country.

    Indonesia had its hottest April in more than four decades last year as extreme heat swept parts of Asia.

    The United Nations said Monday that 2024 was set to be the hottest year ever recorded worldwide.

    Both China and India have already said the year was their hottest in decades.

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  • Pizza 4P’s launches in Indonesia

    Pizza 4P’s launches in Indonesia

    After entering Japan last year, Vietnam-based chain Pizza 4P’s has opened its first location in Indonesia, accelerating the brand’s international expansion.

    The store, located in Jakarta’s Mori Tower, features nature-friendly materials including handwoven water hyacinth wallpaper, indigo-dyed handwoven cotton cushions and terrazzo flooring embedded with seashells.

    According to Masuko Yosuke, Pizza 4Ps’ founder and CEO, the company also collaborates with a local Jakarta bakery to impart its culture of making sourdough dough.

    “Our Jakarta store is built around the theme of “Biodiversity”, honouring the rich natural diversity of Indonesia,” said Yosuke.

    “From the interior design to the menu, every aspect reflects this theme, aiming to create a space where you can feel the interconnectedness of all living things—a sense of Oneness.”

    Pizza 4P’s, headquartered in Ho Chi Minh City, was founded in 2011 by Japanese couple Yosuke and Sanae Masuko as a single restaurant selling wood-fired gourmet pizzas.

    The chain quickly established a cult following among expats and locals, and by the time Mekong Capital invested in 2018, it had expanded to eight locations.

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  • Indonesia rolls out $52B stimulus package for 2025

    Indonesia rolls out $52B stimulus package for 2025

    Indonesia has unveiled economic stimulus packages totaling IDR827 trillion (US$51.65 billion) for 2025, designed to mitigate economic shocks and address the weakening purchasing power of low- and middle-income groups.

    The stimulus also aims to cushion the impact of an upcoming increase in the value-added tax (VAT) rate from 11% to 12%, set to take effect on January 1, 2025.

    Minister of Finance Sri Mulyani Indrawati said the stimulus measures are carefully designed to provide balanced support, particularly for lower-income segments of society, to ensure their financial stability despite the VAT increase.

    A significant portion of the stimulus, amounting to IDR265.6 trillion, will go toward VAT incentives that benefit a range of sectors. These include micro-, small-, and medium-sized enterprises (MSMEs), essential food staples, education, healthcare, transport, energy, low-cost housing, and financial services. Basic necessities like rice, meat, fish, eggs, vegetables, and milk will remain exempt from the VAT.

    The government and the House of Representatives have decided not to impose VAT on essential commodities needed by the public, she said, adding some IDR394 trillion has been allocated for energy subsidies and compensation, which will cover the costs of subsidised fuel, electricity, and LPG.

    To further support the economy, the government is allocating IDR129 trillion to social aid programmes, including food aid, subsidies for health insurance premiums, and easier access to unemployment benefits for laid-off workers.

    In the automotive sector, the government will offer tax incentives for electric and hybrid vehicles. Electric vehicles and hybrid cars will receive substantial tax breaks, including a 3% reduction in luxury taxes for hybrid vehicles.

    For labor-intensive industries, the government will provide tax exemptions, financing support, and 50% subsidies for workplace accident insurance to encourage job creation and economic growth in this sector.

    In the housing sector, the government would extend VAT exemptions for house purchases. The sector not only meets the public’s basic needs but also has a significant multiplier effect, creating jobs and stimulating economic growth, the minister said.

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  • Apple plans $1B manufacturing plant investment in Indonesia

    Apple plans $1B manufacturing plant investment in Indonesia

    Tech giant Apple plans to invest $1 billion in a manufacturing plant in Indonesia that produces components for smartphones and other products, Indonesia’s investment minister said on Thursday.

    In October, Indonesia banned sales of the iPhone 16 because it said Apple had not adhered to rules that require phones sold domestically to have at least 40% locally made parts. And this week, the government said it would increase the local content requirement.

    Investment minister Rosan Roeslani told reporters that details of the planned investment were still being ironed out, but when asked confirmed it was the expected $1 billion investment he had flagged earlier this week.

    “We will discuss with them some more … our hope is for everything to be announced in the next week after receiving a written commitment from them,” he said.

    Last week, the government had rejected a $100 million investment proposal from Apple to build an accessory and component plant as not enough to reverse the iPhone 16 ban.

    Apple did not immediately respond to a request for comment.

    Apple currently has no manufacturing facilities in Indonesia, a country of about 280 million people, but since 2018 it has set up application developer academies.

    Indonesia considers that strategy an attempt to meet local content requirements for the sale of older iPhone models.

    Companies typically increase the local composition through local partnerships or by sourcing parts domestically.

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  • Indonesia says Apple’s $100M investment proposal inadequate

    Indonesia says Apple’s $100M investment proposal inadequate

    Indonesia said a $100 million investment proposal from Apple to build an accessory and component plant was not enough for the country to allow the tech giant to sell its latest iPhone model, its industry ministry said on Monday.

    Indonesia in November banned sales of Apple’s iPhone 16 after it failed to meet requirements that smartphones sold domestically should comprise at least 40% locally-made parts.

    Indonesia has also banned the sale of Alphabet’s Google Pixel phones over a similar lack of use of local components.

    Indonesian authorities last week said Apple had put forward the investment proposal to lift the sales ban.

    Apple did not immediately respond to a request for comment.

    “We have done an assessment and this (proposal) has not met principles of fairness,” Industry Minister Agus Gumiwang Kartasasmita told a press conference, comparing the proposal to Apple’s bigger investments in neighboring Vietnam and Thailand.

    Apple has no manufacturing facilities in Indonesia, but has since 2018 set up application-developer academies, which Jakarta considers a way for the company to meet local content requirement for the sale of older iPhone models.

    Companies usually increase the use of domestic components to meet such rules through partnerships with local suppliers or by sourcing parts domestically.

    Agus said Apple had an outstanding investment commitment of $10 million it should have carried out before 2023. He also wanted Apple to commit to new investment until 2026.

    The ministry would invite Apple to visit Indonesia to negotiate further, Agus said.

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