Apple remains committed to invest despite tariffs: ID gov't

Indonesia’s Deputy Minister for Investment and Downstreaming, Todotua Pasaribu, has confirmed that Apple will continue its investments in Indonesia, despite a potential 32% import tariff from the United States.

Pasaribu said that Apple’s ongoing projects in the country remain unaffected.

“There are no changes. Apple’s investments are still running and are safe.” he said.

In February, Apple announced a commitment to invest around 2.6 trillion rupiah (US$160 million) in Indonesia.

This investment will support initiatives such as the Apple Academy and the Apple Professional Developer Academy.

🔗 Source: CNN Indonesia

🧠 Food for thought

1️⃣ Market access as technology investment leverage

Indonesia’s approach with Apple demonstrates a growing trend among emerging economies to use market access as leverage for securing technology investments.

Indonesia initially banned iPhone 16 sales in the country until Apple committed to investing $160 million in local initiatives including Apple Academy and a Professional Developer Academy 1.

This strategy has become increasingly common across Southeast Asia, with nations using their large consumer markets to secure not just capital but meaningful technology transfer and skills development.

Similar approaches have been used by countries like India, which implemented local manufacturing requirements that prompted Apple to shift some iPhone production there, creating both jobs and technological capacity 2.

For Apple and other tech giants, these market access conditions create a complex cost-benefit analysis between compliance costs and access to Indonesia’s growing digital economy, projected to reach $125 billion by 2025 1.

2️⃣ Diplomatic chess in an era of rising tariffs

Indonesia’s response to Trump’s threatened 32% tariff showcases the complex diplomatic maneuvering countries employ when facing protectionist measures.

Rather than immediate retaliation, Indonesia is prioritizing negotiations scheduled for mid-April in Washington DC while exploring strategic investments in the US through vehicles like Danantara as a diplomatic counterbalance 3.