Minister Of Industry: Apple's Proposal Has Not Met Four Fair Aspects

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita stated that the investment proposal worth 100 million US dollars (Rp 1.5 trillion) submitted by Apple has not fulfilled four fair aspects that have been determined through a technocratic assessment by the Ministry of Industry.

The four aspects include:

"Based on the technocratic assessment, this figure does not meet the criteria that we consider fair," Agus said in a press statement in Jakarta, Monday, November 25.

In addition to assessing the new proposal, Agus also emphasized that Apple must pay off investment commitments in 2023 amounting to 10 million US dollars which have yet to be realized. This settlement is an important requirement before further discussion regarding new investment proposals for the 2024-2026 period.

"We remind that the remaining payment of investment commitments is not included in the discussion of new proposals. These are two separate things," he explained.

Apple itself is required to submit an investment proposal every three years as part of an innovation scheme to obtain a Domestic Component Level (TKDN) certificate. However, Agus suggested that Apple consider setting up production facilities in Indonesia, so this scheme does not need to continue to be repeated.

"By setting up a factory in Indonesia, Apple can make a bigger direct contribution and reduce its dependence on submitting proposals every three years," added Agus.

Encouragement For A Bigger Investment

The Ministry of Industry hopes that the value of Apple's investment in Indonesia can exceed 100 million US dollars. According to Agus, the huge profit Apple gets from the domestic market should be comparable to its contribution to industrial development and the national economy.

Spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif, previously stated that the government wants greater investment to encourage the development of the domestic manufacturing industry and increase Indonesia's participation in the global supply chain.

"With a larger investment value, the presence of this industry will not only increase employment but also have a real impact on the people of Indonesia," he said.

Negotiated Steps And Revision Of TKDN Rules

Minister of Industry Agus revealed that the Ministry of Industry through the Directorate General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) will immediately send a letter to Apple to carry out negotiations. This letter includes discussing the payment of investment commitments in 2023 and evaluation of new investment proposals submitted.

"Mr. Director General of ILMATE will immediately send an e-mail to invite Apple to Indonesia," said Agus.

On the other hand, the Ministry of Industry is also reviewing the revision of the Minister of Industry Regulation No. 29 of 2017 which regulates the procedures for calculating TKDN. This revision is needed to adjust the changes to the HKT industry landscape and ensure a fair investment principle.

"We are committed to enforcing fair rules and encouraging investment that provides optimal benefits for Indonesia," concluded Minister of Industry Agus.

With this step, the government hopes to attract investment greater than Apple while strengthening Indonesia's position in the global supply chain.