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All Journal Verity: Jurnal Ilmiah Hubungan Internasional (International Relations Journal)
Jhon Pattinussa
Department of International Relations, Universitas Pelita Harapan, Tangerang
Social Sciences

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Unveiling Indonesia’s Challenges in Attracting Foreign Direct Investment: The Case of Apple Inc and the Electronic Manufacturing Industry Hanna Angel Roring; Jhon Pattinussa; Roy Vincentius Pratikno
Verity: Jurnal Ilmiah Hubungan Internasional (International Relations Journal) Vol. 17 No. 34 (2025): July-December
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/verity.v17i34.10443

Abstract

Foreign Direct Investment (FDI) plays a pivotal role in advancing economic growth, industrial modernization, and technology transfer in emerging economies. This study explores Indonesia’s persistent challenges in attracting high-technology FDI within the electronic manufacturing sector, focusing on the case of Apple Inc. as a reflection of broader policy dynamics. Employing a qualitative case study approach, the research analyzes secondary data from official reports, government publications, and scholarly literature to uncover the intersection between Indonesia’s economic ambitions, political diplomacy, and security considerations. The findings reveal that although Indonesia possesses significant potential—characterized by abundant resources, a large domestic market, and an expanding digital ecosystem—its investment climate remains hindered by bureaucratic inefficiencies, inconsistent regulations, and limited technological infrastructure. The study highlights that Apple Inc., while fulfilling its Local Content Requirement (TKDN) through software-based initiatives such as the Apple Developer Academy, continues to refrain from establishing local manufacturing facilities. This decision underscores the broader structural constraints faced by multinational corporations operating in Indonesia’s regulatory environment. Economically, the research demonstrates that FDI remains central to Indonesia’s goal of transitioning from resource-based exports toward high-value manufacturing. Politically, it shows that FDI functions as an instrument of economic diplomacy, enhancing Indonesia’s international credibility. From a security perspective, strengthening the electronic manufacturing sector through FDI is vital for achieving technological sovereignty and resilience amid global supply chain disruptions. The study concludes that Indonesia’s success in attracting sustainable FDI depends on its ability to harmonize economic liberalization with institutional reform and industrial readiness. Addressing these structural challenges is imperative for Indonesia to fully integrate into the global value chain and achieve its vision under the Making Indonesia 4.0 roadmap.
Kebijakan Logistik Maritim Indonesia: Perluasan Pasar Regional dan Penanganan Hambatan Non-Tarif di Asia Tenggara (2020–2024) Rieke Clara Mustikasari; Jhon Pattinussa; Roy Pratikno
Verity: Jurnal Ilmiah Hubungan Internasional (International Relations Journal) Vol. 18 No. 35 (2026): January - June
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/verity.v18i35.10956

Abstract

This study examines Indonesia’s maritime logistics policy during 2020–2024 and its role in facilitating market expansion and reducing non-tariff barriers (NTBs) within the Association of Southeast Asian Nations (ASEAN). As the world’s largest archipelagic state, Indonesia relies heavily on maritime transport, yet high logistics costs, estimated at 20–24 percent of total production costs, and persistent NTBs continue to constrain export competitiveness. Using descriptive and comparative methods, this research evaluates Indonesia’s strategy through institutional reforms, infrastructure modernization, and regional cooperation mechanisms, while benchmarking performance against Singapore, Malaysia, and Thailand using indicators such as port efficiency, digital integration, and the Logistics Performance Index (LPI). The findings indicate measurable progress through customs digitalization under the National Single Window (NSW), implementation of the National Logistics Ecosystem (NLE), and participation in regional frameworks, including the ASEAN Single Window (ASW) and the ASEAN Customs Transit System (ACTS). These initiatives have reduced dwelling time, improved supply-chain predictability, and supported trade growth, with Indonesia’s total trade value increasing from USD 304.76 billion in 2020 to USD 529.35 billion in 2022. Nevertheless, significant challenges remain, including regulatory fragmentation, uneven port development, limited digital interoperability, and inconsistent institutional capacity across regions. The study concludes that maritime logistics reforms have strengthened Indonesia’s integration into ASEAN trade networks; however, sustained competitiveness will require deeper regulatory harmonization, systematic performance measurement, infrastructure equalization, and long-term bureaucratic modernization to effectively mitigate NTBs and secure durable market expansion.
Co-Authors Hanna Angel Roring Rieke Clara Mustikasari Roy Pratikno Roy Vincentius Pratikno