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Minister Of Industry Asks Apple To Comply With Business Fairness Principles While Investing In Indonesia
Monday, 25 Nov 2024
The Minister of Industry, Agus Gumiwang Kartasasmita, talked about the latest news about Apple's investment proposal for Indonesia. Previously, the American tech giant offered to invest US$ 100 million, which is about Rp 1.58 trillion over two years.
Agus mentioned that after a meeting with the Ministry of Industry, Apple's investment offer did not meet fairness standards. However, he did not confirm that the government rejected the proposal.
"US$ 100 million, based on a technical assessment, does not meet the four fairness principles," he stated at the Ministry of Industry on Monday (November 25, 2024).
The four fairness aspects include: first, comparing Apple's investment in other countries (currently, Apple has no production facilities in Indonesia). Second, comparing investments from other smartphone, laptop, and tablet brands in Indonesia.
Third, the creation of added value and state revenue, and fourth, job creation in Indonesia. Therefore, Apple is asked to increase its investment based on these fairness aspects.
"Based on today's leadership meeting, it has been decided that Apple should increase its investment according to these fairness principles," he said.
On the other hand, the Ministry of Industry requires Apple to fulfill the remaining investment commitment by 2023, which amounts to US$ 10 million or around Rp 158 billion. This remaining payment is not part of the discussion for the new proposal of US$ 100 million.
The Minister of Industry explained that the new proposal discussions apply to Apple's obligations for 2024-2026 to obtain the TKDN certificate. Apple is required to discuss proposals every three years due to its investment decision to choose an innovation scheme for obtaining the TKDN certificate.
The Ministry of Industry, through the Director General of ILMATE, will soon invite Apple representatives to Indonesia to discuss the 2023 investment commitment payment and the new proposal for 2024-2026.
"The Ministry believes it would be better for Apple to establish a production facility or factory in Indonesia to avoid submitting investment scheme proposals every three years," he stated.
Agus added that the Ministry has also started revising Permenperin No.29 of 2017 regarding the regulations and procedures for calculating the domestic component value in mobile phones, handheld computers, and tablet computers, considering that the HKT industry landscape has changed significantly and to uphold the principle of fair investment. (ridwan@insightinnews.com)
