Government Says Apple's New Investment Of IDR 1.58 Trillion Has Not Fulfilled Fair Aspects

Apple (Photo: Unsplash)

JAKARTA - The government has opened its voice regarding Apple's proposal to invest US$100 million or around Rp. 1.58 trillion. This figure is considered not to meet the principle of justice.

"Based on today's leadership meeting and after studying the proposal proposed by Apple, through a technocratic assessment, the Ministry of Industry considers that the proposal submitted by Apple has not met the fair aspect," said Minister of Industry (Menperin) Agus Gumiwang Kartasasmita in a written statement, Monday, November 25.

Agus explained that there are four fair aspects that have not been met by the giant company. First, regarding the comparison of Apple's investment in countries other than Indonesia.

"Until now, Apple has not invested in production/factories facilities in Indonesia," he said.

Second, it is related to investment from other HKT producers in Indonesia. For example, Samsung disbursed IDR 8 trillion and Xiaomi IDR 5.5 trillion.

The third criterion is the creation of added value and state income from imports. Lastly is how much companies invest in the country to absorb labor.

On the other hand, Agus said, the Ministry of Industry still requires Apple to pay off the remaining investment commitments until 2023. "The remaining payment of this commitment is not part of the discussion of the new proposal," said Agus.

Meanwhile, Agus considered that the proposal for the 2024-2026 period would also be renegotiated with the Directorate General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry of Industry.

Furthermore, Agus said, the government encourages Apple to use a factory investment scheme.

Not only that, Agus also asked Apple Inc. to pay off the previous investment commitment worth 10 million US dollars. If the commitment is paid off, later the iPhone 16 can be sold in Indonesia.

"On the other hand, we still require that Apple pay off the remaining investment commitments until 2023. The remaining payment of this commitment is not part of the discussion of new proposals, in which discussion of new proposals applies to Apple's obligations in 2024-2026 to obtain TKDN certificates," he concluded.