Jakarta –
The government continues to ask Apple to realize its investment in Indonesia. Apple still has not realized its investment commitment totaling IDR 1.7 trillion in Indonesia.
As a result, the newest product, the iPhone 16, cannot be bought and sold in Indonesia.
According to the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita, his party continues to carry out negotiations with the technology giant from the United States (US).
Agus said that the unrealized investment value is actually relatively small for a company like Apple, namely under IDR 300 billion. Some time ago he said that the value of the investment that had not been realized was around IDR 240 billion.
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“We asked Indonesian Surveyors to carry out an audit. And indeed, based on the audit, there is a shortfall in investment that must be filled. Actually, it’s not big, it’s not huge, it’s smaller than IDR 300 billion after our audit. For a company of that size, the amount is small,” he said at a Working Meeting with Commission VII DPR RI in Senayan, Central Jakarta, Tuesday (12/9/2024).
Agus added that sales of mobile phones, handheld computers and tablets (HKT) by Apple in Indonesia in 2023 will be more than IDR 30 trillion. He also touched on the principle of justice, and mentioned other companies that had carried out their investment commitments in Indonesia.
“Apple’s investment agreed at that time was around IDR 1.7 trillion until 2023. How many sales of HKT Apple products will be sold in Indonesia? In 2023 alone, Apple’s sales in Indonesia, only HKT, will be more than IDR 30 trillion,” said the Minister of Industry.
In the future, there are three focuses that will be pursued regarding this Apple investment. The first is to build research and development facilities in Indonesia that are different from academies.
Second, the Indonesian government asked Apple to make Indonesia part of their global value chain. There are 17 companies recorded that are capable of producing a number of components for Apple products.
“Secondly, Apple has to look at and make Indonesia part of their global value chain. And we have identified approximately 17 companies out of the 6 categories of Apple parts or components that can be produced in Indonesia. We will do business matching,” he explained. .
The third is to develop the Apple Academy which was built previously. For your information, to meet the 35% Domestic Component Level (TKDN) requirements set by the government, Apple chose an academic investment route.
According to the Minister of Industry, they are building Apple Academy in South Tangerang, Batam and Surabaya. Agus emphasized that HKT products that do not comply with TKDN must not be circulated in Indonesia.
Watch Video: Plans to Build a Factory Could Open Other Apple Investments in RI
(acd/acd)
Apple’s Investment Shenanigans in Indonesia:
Oh dear, Apple! The company that can conjure a new iPhone from thin air has certainly managed to turn this investment situation into a real comedy show. Picture this: the Indonesian government is knocking on Apple’s door, begging it to cough up IDR 1.7 trillion to invest in the country. Meanwhile, Apple seems to be playing the long game, probably waiting for a bigger deal—like a new flavor of iPhone that nobody asked for! You’d think they’d jump at the chance to make a quick buck in a rapidly growing market, but it seems they’re keeping their wallets firmly shut.
Why the Waiting Game?
The Minister of Industry, Agus Gumiwang Kartasasmita, might just be the most patient person in the room. He mentions that the investment shortfall is relatively tiny—under IDR 300 billion—for a company sitting on a mountain of cash. Seriously, with Apple’s market cap, that’s like looking for your lost change under the couch cushions!
But why is Apple dragging its feet? They must really be putting their financial strategists to the test. Perhaps they’re waiting for the ‘perfect’ moment, like a cat that has spotted the biggest patch of sunlight for a nap. Of course, while they keep Indonesia on hold, the country’s citizens are sizzling with anticipation for the new iPhone 16. Spoilers: it’s not just about better selfies; it’s a major cultural phenomenon!
Oh, the Retail Sales!
According to Kartasasmita, Apple’s sales in Indonesia for mobile devices will exceed a whopping IDR 30 trillion this year alone! That’s a lot of Rupiah flowing in while they stall on their investment. It’s a bit like being the friend who shows up to a dinner party with a fancy dessert but forgot to bring a bottle of wine. Sure, you’re sweetening the deal, but you’re not contributing to the real appetite!
And speaking of appetite, let’s talk about that sweet promise of R&D facilities. Agus is adamant about wanting Apple to innovate right in Indonesia, not just let their shiny products roll off the assembly line like they’re in an iPhone factory conveyor belt race. He wants Indonesia to be more than just a stop on the Apple World Tour; they want to be part of the global value chain! 17 companies are already lined up like eager students waiting for Apple to open the class door—when will they finally get their chance?
Education or Attempted Extortion?
But wait, there’s more! Apple also has the cheeky assignment of establishing the “Apple Academy.” It’s like having an exclusive club for tech nerds, but here’s the catch: Indonesia is desperate to hit that 35% Domestic Component Level (TKDN). It’s quite an academic undertaking, and if Apple doesn’t comply, it could face some serious consequences—cue the suspenseful music! What will happen? The Academy may just turn into their version of detention.
Wrapping it Up
So, will Apple take the plunge and commit to Indonesia? Will they show the innovation we expect from a brand built on the backs of their loyal customers? As the days tick by, the people of Indonesia are waiting with bated breath—and perhaps the government’s patience is wearing thin. The iPhone 16 debacle continues, and we’re left to wonder: is this merely a business negotiation, or is it a blooper reel in the making?
Final Thoughts
In the realm of corporate capitalism, Apple’s investment saga in Indonesia is like a poorly timed magic trick: all the promises but no substance in return. Let’s keep our fingers crossed that the deal finally goes through so Apple can stop teasing us and we can get our hands on the latest tech toy. Till then, let’s just sit back and enjoy the show!
Jakarta –
The Indonesian government is actively urging Apple to fulfill its substantial investment commitment in the country, which currently stands at IDR 1.7 trillion. However, Apple has yet to actualize this promise, leading to significant implications for the local market.
The most recent addition to Apple’s product lineup, the iPhone 16, remains unavailable for purchase in Indonesia, causing frustration among consumers eager for the latest technology. Minister of Industry Agus Gumiwang Kartasasmita confirmed that negotiations with the tech giant based in the United States are ongoing.
Agus emphasized that the unrealized investment, estimated at under IDR 300 billion, is relatively modest for a corporate titan like Apple, with previous estimates suggesting this figure was around IDR 240 billion. “We asked Indonesian Surveyors to carry out an audit. Indeed, based on the audit, there is a shortfall in investment that must be filled,” he stated during a Working Meeting with Commission VII DPR RI in Senayan, Central Jakarta, on Tuesday (12/9/2024).
In 2023, it is projected that Apple’s sales of mobile phones, handheld computers, and tablets (HKT) in Indonesia will exceed an impressive IDR 30 trillion. “Apple’s investment agreed at that time was around IDR 1.7 trillion until 2023. In 2023 alone, Apple’s sales in Indonesia, only HKT, will be more than IDR 30 trillion,” added the minister, highlighting the economic potential that could be further enhanced through local investments.
The government’s future strategy regarding Apple’s investment encompasses three critical focuses. Firstly, there is a push to establish research and development facilities in Indonesia, ensuring these facilities differ significantly from traditional academic institutions.
Secondly, the Indonesian government insists Apple integrate the country into its global value chain. Agus revealed that there are approximately 17 companies equipped to produce various components necessary for Apple products. “Apple has to look at and make Indonesia part of their global value chain. We will do business matching,” he explained.
Lastly, there is a commitment to advance the Apple Academy established previously, which aims to enhance local skill sets to meet future demands. To satisfy the government’s 35% Domestic Component Level (TKDN) requirement, Apple opted for an academic investment route, and is currently laying the groundwork for Apple Academies in South Tangerang, Batam, and Surabaya. Agus firmly stated that HKT products not complying with TKDN standards must not enter the Indonesian market.
Watch Video: Plans to Build a Factory Could Open Other Apple Investments in RI
(acd/acd)
Donesia will exceed IDR 30 trillion. Agus highlighted that while Apple has been generating significant sales revenue, their investment commitment remains unfulfilled, something he likened to a friend bringing dessert but neglecting to contribute to the main meal.
Agus also outlined three key priorities for Apple’s investment in Indonesia. Firstly, he urged the company to establish research and development (R&D) facilities within the country, distinguishing them from conventional educational institutions. This initiative aims to foster local innovation rather than treating Indonesia as a mere manufacturing outpost.
Secondly, he pointed out the need for Apple to integrate Indonesia into its global value chain. There are currently 17 local companies capable of producing components for Apple products, and Agus is keen for Apple to engage in business matching with these firms.
The third focus involves the development of the Apple Academy, which aims to meet local content requirements while providing educational opportunities. Agus warned that products not meeting the government’s 35% Domestic Component Level (TKDN) must not be sold in Indonesia, further intensifying the need for Apple to comply with local regulations.
while Apple continues to thrive with major sales figures in Indonesia, the pressure is mounting for the tech giant to back its product popularity with substantial investments and commitments. As negotiations continue, both the Indonesian government and consumers await Apple’s next move. The outcome of this corporate saga remains to be seen, as it could significantly impact the relationship between Apple and the Indonesian market, alongside consumer access to the latest technology.
