Minister of Industry Agus Gumiwang Kartasasmita says Apple’s investment offer of US$100 million over two years does not meet the globally recognized principle of fairness in invesment.
“Based on a technocratic assessment, the amount does not meet the principle of fairness in investment,” Agus said on Monday, November 25, 2024.
He revealed that the investment proposal had been reviewed in the ministry and was considered unbalanced compared to Apple’s investment in other countries and the contribution of similar technology brands in Indonesia.
He cited that there are four aspects of fairness as the basis for this assessment.
First is comparison of investment in other countries. Agus said that Apple has not yet established a production facility in Indonesia, in contrast to its contribution in other countries.
Second is comparison with other mobile phone, handheld computer, and tablet brands. In this case, Apple’s investment is compared to the contribution of other producers’ brands that are already present in Indonesia.
Third is the creation of added value and state revenue. According to Agus, Apple’s contribution to economic value and tax revenue is considered less than optimum.
Fourth is job creation. The minister said that Apple’s investment offer is not significant enough to support the opening of new jobs in Indonesia.
The Ministry of Industry has asked Apple to increase its investment value to comply with the principle of justice.
TKDN revision
In addition, the Ministry of Industry emphasized that Apple is required to pay off the remaining investment commitment of US$10 million which is due in 2023. However, Agus cited that this obligation is not included in the discussion of the new proposal for the 2024-2026 period, which requires Apple to obtain a Domestic Component Level (TKDN) certificate.
“We urge Apple to immediately establish a production facility in Indonesia so that it does not need to continue to submit investment proposals every three years,” Agus said.
As part of efforts to support the principle of justice, the Ministry of Industry is also revising the Minister of Industry Regulation No. 29/2017 on TKDN requirement. This revision was made to adjust to the development of the mobile phone, handheld computer, and tablet industry and to ensure fairer investment governance.
Director General of Metal, Machinery, Transportation Equipment, and Electronics Industry (ILMATE) at the Ministry of Industry will summon Apple to discuss the settlement of investment obligations and new proposals. The government hopes that the meeting will produce solutions that can increase Apple’s contribution to the national industry and economy.
The government of Indonesia has prohibited the sale of the iPhone 16 , the latest variant of Apple smartphone due to Apple’s failure to comply with local investment regulations.
