According to Industry Ministry staff member Sanny Iskandar, who met with Apple representatives earlier today, the company's first R&D center is expected to begin operations in Green Office Park in BSD City, Tangerang, sometime in the second quarter, reports The Jakarta Post. Tangerang is a city located in the province of Banten.

The center will develop educational programs for 300 to 400 local students, Sanny said.

Aside from mentoring new app makers, the R&D center fulfills local sourcing stipulations imposed by the Indonesian government. Instituted in January, the new regulation requires manufacturers selling 4G phones in the country to meet a 30 percent local content sourcing threshold. 

Unlike similar regulations in India, Indonesia counts software or monetary investments as local sourcing, meaning Apple's R&D investments can be applied toward the 30 percent goal. 

Basically, Apple is investing $44 million in three Indonesian R&D facilities for the right to market current and future iPhone models in the region.

Not coincidentally, Apple is slated to start iPhone 7 and 7 Plus sales in Indonesia on Friday. Prior to its $44 million commitment, the company was restricted from selling certain iPhone 6 series products in the country.

Source: appleinsider