Apple Aims Big on Indonesia Even as US Import Tariff Jump, says Todotua Pasaribu

Todotua Pasaribu, Indonesia's Deputy Minister for Investment and Downstreaming, has affirmed that Apple will keep investing in Indonesia in spite of a possible 32% import tax from the US.

Apple's ongoing projects in the nation are unaffected, according to Pasaribu.

"Nothing has changed.”Apple's investments are safe and keep operating," he stated.

Apple declared in February that it would invest approximately 2.6 trillion rupiah ($160 million) in Indonesia.

Programs like the Apple Academy and the Apple Professional Developer Academy will benefit from this investment.

A increasing trend among emerging economies is the use of market access as leverage to secure technological investments, as evidenced by Indonesia's strategy with Apple.

Before Apple promised to invest $160 million in regional projects like Apple Academy and a Professional Developer Academy, Indonesia first prohibited the sale of iPhone 16s in the nation.

Southeast Asian countries are increasingly employing this tactic, leveraging their sizable consumer markets to obtain not only funding but also significant technology transfer and talent development.

Countries like India have employed similar strategies, enforcing local manufacturing regulations that led Apple to relocate some iPhone production there, generating employment and technological capability.

These market access requirements force Apple and other IT behemoths to weigh the costs and benefits of compliance against access to Indonesia's expanding digital economy, which is expected to generate $125 billion by 2025 1.

The intricate diplomatic strategies used by nations when confronted with protectionist policies are demonstrated by Indonesia's response to Trump's projected 32% tariff.

This approach mirrors strategies seen in international trade relations where countries increasingly use their sovereign investment funds as tools of economic diplomacy, similar to how Singapore’s Temasek has strategically invested in the US.

The Indonesian government’s confidence that Apple won’t withdraw its investments despite these trade tensions reflects their assessment that company-specific arrangements can be maintained even amid broader trade disputes.