DPR Is Mandatory To Support Government Against Apple's Request

JAKARTA - The DPR asked the Government to reject Apple's investment because it demanded a tax holiday or corporate tax exemption for 50 years in Indonesia.

"As a result, the DPR supports the Government's policy of prohibiting the iPhone 16 from entering Indonesia, in my opinion, is a positive thing and needs to be appreciated," said Economic Observer Piter Abdullah, Thursday, November 7.

As is known, Member of Commission VI of the Indonesian House of Representatives, Mufti Anam, stated that Apple's request was unreasonable. Mufti said that the iPhone brand deserves to be blocked from Indonesia.

In the DPR Commission VI working meeting some time ago, Mufti Anam asked SOE Minister Erick Thohir to intervene so that Indonesia would not depend on the iPhone. Because the iPhone has made so many benefits from the Indonesian people, but is still trying to make a profit through the desire for tax exemption.

According to Piter, the DPR's decision to welcome the government shows the DPR's objective attitude, and is no longer about sectoral egos.

"This shows the attitude of the DPR which objectively puts forward national interests. The DPR is not divided and can be compact, especially when faced with national problems," explained the Executive Director of the Segara Research Institute.

Piter also praised Mufti Anam, who is a member of the PDI-P (PDIP) faction because even though he is not part of the government, he still supports the policy to ban the iPhone 16. As is known, PDIP is not part of the Prabowo Subianto government coalition.

"Even the loudest support for government policies can be heard from members of the PDIP faction DPR regarding this iPhone," Piter said.

The commemoration from the DPR is also expected to strengthen the Government's steps to be more assertive in dealing with multinational companies that are too proud and underestimate Indonesia. Piter said input from the DPR should be taken into consideration in the Government to make policies.

"The request for an iPhone to get a 50-year tax holiday facility as a condition for them investing in Indonesia is a harassment that must be responded to not only decisive but also dignified," he said.

Tax holidays itself is a policy that provides exemptions or tax reductions within a certain period of time. This policy is usually given by the Government to encourage investment or certain economic activities with the aim of supporting the growth of certain sectors that are considered strategic.

Companies that have just invested in technology or environmentally friendly industries may receive tax holidays facilities. In this case, the company can delay or even not pay taxes in the first few years of its operations.

So if Apple asks for a 50-year tax holiday, it's the same as not paying a 50-year tax. Obviously it will hurt the country.

Furthermore, Piter also highlighted Mufti Anam's statement at the House of Representatives Commission VI meeting with the Minister of Cooperatives Budi Arie. While still serving as Minister of Communication and Information, Budi Arie accompanied President Joko Widodo (Jokowi) to receive a visit from Apple CEO Tim Cook. At that time Tim Cook and Jokowi were said to be discussing Apple's investment plan in Indonesia.

Most recently, Tim Cook reportedly offered an investment of USD 10 million to Indonesia in exchange for a 50-year tax holiday request and to disburse the iPhone 16 distribution ban issued by President Prabowo Subianto. Mufti also asked the Government to reject Apple's offer because the investment figures offered were considered mere underprivileged.

"This warning from the DPR must be a warning. Moreover, the spirit is the same as the current government to encourage international companies to increase local investment," said Piter.

Piter added that the government and the DPR's firm stance on Apple should be a momentum to prioritize domestic industries and products.

"We once had a fairly developed national mobile phone industry but later died because we lost in competition with imported products. The mobile phone industry must be revived," explained the Perbanas Institute lecturer.

"This could be the starting point to tighten the entry of imported cellphones and provide SPREAD for the domestic industry," added Piter.

Previously, a member of Commission VI of the Indonesian House of Representatives from the PDIP faction, Mufti Anam, was furious by Apple's policy, an iPhone maker who required a tax holiday or corporate tax exemption for 50 years if he wanted to invest in Indonesia. Mufti considered this provision outrageous.

Mufti also strongly criticized the CEO of Apple Tim Cook's offer to Indonesia regarding investments worth USD 10 million or around Rp. 157 billion to disburse the iPhone 16 distribution ban issued by President Prabowo Subianto. He even likened Tim Cook's investment offer to a peanut.

Furious at Apple's offer, which seemed demeaning to Indonesia, Mufti asked the Government to reject the kacang' investment offer. According to him, Indonesia is not a monkey who will be happy just by being given a peanut.

"This (Rp157 billion) is a peanut, sir. We are not monkeys who get the slightest investment. If it's a joke like that, just cancel it, sir," Mufti criticized loudly.

Mufti conveyed this during a hearing (RDP) with the Minister of Cooperatives Budi Arie at Commission VI of the Indonesian House of Representatives, today.

"It insults our nation, considers us stupid people, an educated nation that can be fooled," said the member of the DPR from the millennial circle.