How one minister is making Apple sweat in Indonesia

In December 2024, Apple proposed a US$1 billion investment in Indonesia  to overturn a ban on iPhone 16. President Prabowo Subianto liked the idea and instructed Airlangga Hartarto, the coordinating minister of economic affairs, to wrap up the deal.

But it is now February, and the iPhone 16 remains banned in the country because of one key holdout: Agus Gumiwang Kartasasmita, the minister of industry. After all, it is his ministry that issues regulations around local components, which are behind the ban.

Image credit: Timmy Loen

“Apple must understand: It is our job as the Ministry of Industry to negotiate with them,” Kartasasmita said in January after meeting with the US-based tech titan’s top executives. “The Indonesian people are watching us.”

So who is this minister, and why is he making Apple sweat? 

Tech in Asia reached out for comment from Kartasasmita, but the Ministry of Industry had not responded by the time of publication.

Scoring political points

To grasp Kartasasmita’s take on Apple, you have to dig deeper into his background.

Kartasasmita isn’t your typical Indonesian power player – no dynastic ties, but plenty of political pedigree. His father, Ginandjar, held a ministerial post three times under Soeharto, who was the country’s president from 1967 to 1998.

Both father and son are members of the Golkar party, which ruled Indonesia under Soeharto for 30 years. Often compared to Singapore’s People’s Action Party (PAP) – aka Prime Minister Lee Kuan Yew’s party – Golkar was part of the era when both leaders were seen as Southeast Asian strongmen.

While the PAP still governs Singapore, Golkar hasn’t had a president since Soeharto resigned in 1998 amid mass unrest. Yet it remains a major force in Indonesian politics.

See also: Apple’s next move in Indonesia: partner, invest, or leave?

Golkar is considered “old money, old political machine,” says a government affairs expert when assessing Kartasasmita’s stance on Apple.  In Indonesia, people with such backgrounds “are still the most capable politicians from a technical standpoint,” the source adds.

After studying in the US, Kartasasmita returned to Indonesia in the mid-1990s. He became and remains a commissioner at Asiana Group, a luxury condo developer run by his wife, Loemongga Haoemasan, a former model and TV host.

But that’s as far as Kartasasmita’s business career went. Elected to parliament in 1998, he’s been in politics ever since. By 2018, he was a minister under then-President Jokowi – first handling social affairs, then industry a year later.

“A political punching bag”?

Don’t press too hard