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 cell phone manufacturer that has not assembled in Indonesia yet. It looks like this won’t happen in the future either.
Minister of Communications and Information (Menkominfo) Budi Arie Setiadi explained that there is little chance of manufacturing an Apple building in Indonesia. This is because foreign agents’ consideration of investing in a country is determined by the incentives provided.
For example, in other countries such as Vietnam, Apple will receive a tax break of up to 50 years while it is able to attract up to 200 thousand workers.
“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. We cannot go to against that? Definitely not,” explained Budi when he met in Jakarta, Wednesday (9/10/2024).
Indonesia is reluctant, but Budi said other countries are giving too many incentives. This will also affect how other businesses are incentivized if Apple gets a tax break.
Regarding Apple’s investment through innovation at the Domestic Content Level (TKDN), he asked the media team 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 investigation, so far the iPhone 16 lineup has not been seen on the Ministry of Industry’s TKDN website.
TKDN performance is a requirement for foreign manufacturers to sell cellular network products to Indonesia.
Apple has not invested IDR 240 billion to RI
When he met before, the Minister of Industry (Menperin) And Gumiwang Kartasasmita said that the validity period of Apple’s TKDN had expired and was not extended.
Agus said that the government is still waiting for additional investment from Apple to carry out the process of expanding the TKDN certificate.
Currently, Apple has only invested 1.48 trillion IDR. This figure, said Agus, is relatively small compared to the products that Apple brings to Indonesia.
Apple’s investment commitment to the government is IDR 1.71 trillion. This means that there is still a guarantee shortfall of IDR 240 billion.
“After they comply with this promise, we will give them licenses to sell the iPhone 16. This is all based on justice for investors who already have a high commitment to capital investment in Indonesia,” Agus said at working meeting of all members. ministries/institutions and business groups for the National Team for the Use of Domestic Products (P3DN), Tuesday (8/10).
So far, Apple’s investment in Indonesia has been in the form of the Apple Development Academy educational facility. Each is spread over BSD (Tangerang), Sidoarjo (East Java), and Nongsa (Batam).
When Apple CEO Tim Cook visited Indonesia, the Cupertino giant said he would set up the fourth Apple Development Academy in Bali.
According to Agus, the government hopes that Apple will not only be an academy as a form of investment in Indonesia. The government is encouraging Apple to build a factory or research development center.
“Apple should not just create an academy, not just create a school because Indonesia is able to create a school, but we encourage Apple to establish RnD in Indonesia,” said Agus.
If Apple meets these conditions, it will receive a TKDN value of 40%. In this way, iPhone 16 and Apple products that use cellular networks can enter the Indonesian market.
(fab/fab)
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2024-10-09 13:10:00
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