Wednesday, May 29, 2024

Government ready to offer incentives to attract Apple inc. investments

Reading Time: 2 minutes
Journalist IBP

Journalist

Editor

Interview

Coordinating Minister of Maritime Affairs and Investment, Luhut Binsar Pandjaitan, has announced that the government is prepared to provide incentives to attract investments from Apple Inc., akin to those in India and Thailand.

“I said, if you (Apple Inc.) can get incentives like in India and Thailand, we (Indonesia) can also provide the same,” Luhut said as quoted by Antara on Thursday, April 18, 2024.

Luhut cited that one incentive the Indonesian government could offer to Apple is a duty exemption for Apple’s components.

“They have products that we cannot produce yet, and we need them to produce something. So why should we tax them?” he said.

According to him, Indonesia should emulate what Thailand and India have done with adjustments to domestic regulations. “But if those regulations hinder, we indeed need to change them,” he added.

Luhut’s statement comes in light of the meeting between President Joko Widodo and Apple Inc. CEO Tim Cook at the Presidential Palace in Jakarta on April 17, 2024.

Luhut said that the focus of discussions between the government and Apple was on exploring strategic plans, including Apple’s expansion opportunities and Indonesia’s integration into the global supply chain.

“The meeting was very productive because he [Tim Cook] just realized that Indonesia is a very potential country with a population of 282 million, stable economic growth, and our macroeconomics are also good,” he said.

According to Luhut, Tim Cook mentioned Indonesia as a target for Apple’s investment.

“The President instructed me to follow up on all of this. We will soon work on this, and I hope in the near future, we will have technical meetings with Apple’s team,” he said.

So far, Apple has invested more than IDR 1 trillion in building the Apple Developer Academy, a digital talent training program to develop Apple applications. The program is already established in four locations − BSD Tangerang, Surabaya, Batam, and the newest one in Bali.

Journalist IBP

Journalist

 

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

PT Medco Energi Internasional has announced the divestment of its stake in the oil and gas field Area 47 in Libya to the Libya National Oil Corporation (NOC).
Indonesia has harnessed less than 1 percent of its solar energy potential, lagging significantly behind neighboring countries as fossil fuels continue to dominate
CNGR, a major Chinese company in the nickel processing industry and a key supplier of battery components for US electric car producer Tesla, is aggressively increasing its investments in Indonesia.
PT Freeport Indonesia (PTFI) President Director Tony Wenas has confirmed that the copper smelter in the Java Integrated Industrial Port Estate (JIIPE) area in Gresik, East Java, is on track to start operations by June 2024.
Jakarta, May 27, 2024 − PT Perusahaan Gas Negara (PGN), a gas subholding of State energy company PT Pertamina, has paid off the remaining bonds worth US$396,709,000 in accordance to the maturity date as part of the repayment of the overall bond value of US$1.35 billion issued in 2014 and listed on the Singapore Exchange.
Coordinating Minister for the Economy, Airlangga Hartarto, met with Daisuke Arakawa, a senior executive at Nikkei Inc, in Tokyo on Friday, outlining the Indonesian government’s commitment to energy transition through collaboration with Japan. One key area of cooperation is investment in electric vehicles (EVs).