Apple’s US$1 billion investment: a win for Indonesia but also a ‘double-edged sword’?

Apple also said one of its suppliers would set up a plant on Batam island to produce AirTags, employing about 1,000 workers. The tech giant is also expected to set up a manufacturing plant in Bandung, as well as fund more developer academies across the country for research and development and to train workers.

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Dedi Dinarto, lead Indonesia analyst at public policy advisory firm Global Counsel in Singapore, said Apple’s offer showed that “Indonesia’s push for local content rules and onshore manufacturing is starting to pay off”.

The government’s hope is that Indonesia is seen as more than just a market for foreign goods, and instead is incorporated into the manufacturing process, according to Dedi.