Jakarta, CNBC Indonesia – There is no sign that the iPhone 16 series will officially enter Indonesia. Not only that, it also seems that Apple will not build a factory in Indonesia as the government hopes.
For your information, Apple is the only foreign cellphone manufacturer that has not yet assembled in Indonesia. It seems that this will not happen in the future either.
Minister of Communication and Information (Menkominfo) Budi Arie Setiadi explained that there is little chance of Apple building manufacturing in Indonesia. This is because foreign producers’ consideration of investing in a country is determined by the incentives provided.
For example, in other countries such as Vietnam, Apple is given tax breaks of up to 50 years provided it is able to attract up to 200 thousand employees.
“If the neighboring country has a tax holiday for 50 years, the land will continue to be tax free. The original officials are 200,000 people. Can we not oppose that? Definitely not,” explained Budi when met in Jakarta, Wednesday (9/10/2024).
Indonesia is not unwilling, but Budi said other countries provide too many incentives. This will also impact how incentives will be given to other industries if Apple gets tax breaks.
Regarding Apple’s investment through innovation at the Domestic Content Level (TKDN), he asked the media crew to ask the Ministry of Industry (Kemenperin). Because the Ministry of Industry knows the calculation formula.
“Because the TKDN formula is in the Department of Industry,” he explained.
Based on CNBC Indonesia’s monitoring, so far the iPhone 16 lineup has not been seen on the Ministry of Industry’s TKDN website.
Fulfillment of TKDN is a requirement for foreign manufacturers to sell cellular network products to Indonesia.
Apple Hasn’t Deposited IDR 240 Billion to RI
When met previously, the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that the validity period of Apple’s TKDN had expired and had not been extended.
Agus said the government is still waiting for additional investment realization from Apple to carry out the TKDN certification extension process.
Currently, Apple has only invested IDR 1.48 trillion. This figure, said Agus, is relatively small compared to the products Apple brings to Indonesia.
Apple’s investment commitment to the government is IDR 1.71 trillion. This means that there is still a commitment shortfall of IDR 240 billion.
“After they adhere to this commitment, we will issue permits for them to sell the iPhone 16. This is all based on justice for investors who already have a high commitment to invest capital in Indonesia,” said Agus at a working meeting of all member ministries/institutions and business entities. Working Group for the National Team for the Use of Domestic Products (P3DN), Tuesday (8/10).
So far, Apple’s investment in Indonesia has taken the form of the Apple Developer Academy educational facility. Each is spread across BSD (Tangerang), Sidoarjo (East Java), and Nongsa (Batam).
During Apple CEO Tim Cook’s visit to Indonesia, the Cupertino giant said he would establish a fourth Apple Developer Academy in Bali.
According to Agus, the government hopes that Apple will not only form an academy as a form of investment in Indonesia. The government encourages Apple to build a factory or research development center.
“Apple shouldn’t just form an academy, don’t just form a school because Indonesia is capable of forming a school, but we encourage Apple to set up RnD in Indonesia,” said Agus.
If Apple meets these conditions, it will get a TKDN value of 40%. In this way, the iPhone 16 and Apple products that use cellular networks can enter the Indonesian market.
(fab/fab)
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