5 hours ago
6
January 10, 2025 | 02:16 pm
TEMPO.CO, Jakarta - Indonesian Industry Minister Agus Gumiwang Kartasasmita has confirmed that Apple Inc. has committed to repaying an investment debt of US$10 million, or approximately Rp162 billion, based on an exchange rate of Rp16,200 per US dollar. This commitment was made during recent negotiations between Apple and the Ministry of Industry.
“The Ministry of Industry will appoint a third-party entity to assess the debt repayment documentation,” Agus said in a written statement released on Thursday, January 9, 2025.
Agus emphasized that the Indonesian government has a legal basis for imposing sanctions on the American tech giant due to its failure to fulfill its investment commitments. He pointed out that Apple's investment activities have not fully adhered to the provisions outlined in the Industry Ministerial Regulation (Permenperin) Number 29 of 2017.
This regulation mandates that innovation investment schemes include education and training activities, as well as research and development initiatives in the field of information technology. However, from 2017 to 2023, Minister Agus noted that Apple has primarily focused on education and training programs, with limited progress observed in research and development activities.
The repayment of this investment debt is one of the requirements stipulated by the Indonesian government for Apple to obtain market access for its iPhone 16 model in the Indonesian market. Ministry of Industry Spokesperson Febri Hendrianto Antoni Arif explained that the debt calculation is based on Apple's initial investment pledge of US$100 million (approximately IDR 1.62 trillion) made between 2020 and 2023, with the aim of fulfilling the Domestic Component Level (TKDN) requirements set by the Indonesian government.
Another requirement for Apple is an increase in the Domestic Component Level (TKDN) from the current 35 percent to 40 percent. Febri highlighted that the Indonesian government has engaged with domestic manufacturers of mobile phones, handheld computers, and tablets (HKT) to facilitate this TKDN increase. He emphasized that a higher TKDN will yield significant benefits by reducing the volume of imported HKT products entering the Indonesian market.
Apple had initially proposed an investment of US$100 million, or approximately Rp1.62 trillion to fulfill the Domestic Component Level (TKDN) requirements. However, Investment Minister/Head of the Indonesian Investment Coordinating Board (BKPM) Rosan Roeslani urged the company to significantly increase its investment commitment to US$1 billion or equivalent to Rp16.14 trillion.
Dian Rahma Fika contributed to the writing of this article.
Editor’s Choice: Sweden Interested to Invest in IKN, Authority Head Claims
Click here to get the latest news updates from Tempo on Google News
Sweden Interested to Invest in IKN, Authority Head Claims
24 menit lalu
The construction of IKN commenced during former President Joko Widodo's reign.
Minister of Industry Stresses Importance of Substance in Ongoing Local Content Negotiations with Apple, No Deadline Set
22 jam lalu
The following is what Minister of Industry Agus Gumiwang said about the content and course of his negotiations with Apple two days ago.
Apple's Batam Factory Won't Lift iPhone 16 Sales Ban in Indonesia: Minister
22 jam lalu
Industry Minister clarified that Apple's plans to establish a factory in Batam will not grant the company permission to sell iPhone 16 in the country.
What is Bitcoin Price History, and What is the Prediction for 2025?
1 hari lalu
This article uncovers Bitcoin price history & its predictions for 2025, providing valuable insights that can help holders before making investment.
Bank Tabungan Negara and Mandiri Capital Indonesia Establish Investment Cooperation to Encourage the Growth of the Housing Ecosystem
1 hari lalu
Bank Tabungan Negara and Mandiri Capital Investment have officially collaborated through the BTN Fund Venture Fund strategic partnership today.
Indonesia Secures Deal with Qatar to Develop 1 Million Housing Units
1 hari lalu
The Indonesian government and Qatar signed a memorandum of understanding (MoU) on the investments to construct 1 million housing units in Indonesia.
Indonesia Hopes Apple Factory in Batam to Start Operating Next Year
2 hari lalu
Minister of Investment and Downstream said that Apple Inc. is committed to investing US$ 1 billion or Rp16.14 trillion in Indonesia.
Apple Executives Visit Industry Ministry for Investment Negotiations
2 hari lalu
Apple Inc. representatives visited the Industry Ministry today to continue negotiations on their investment plans in Indonesia.
Should You Invest in Bitcoin in 2025? Here's Expert Insight
2 hari lalu
After the 150% rally in 2024, should you invest in Bitcoin this year? Let's learn more about the forecasted nature of the cryptocurrency here.
Apple Agrees to Pay US$95mn to Settle Siri Privacy Lawsuit
3 hari lalu
Apple agreed to pay US$95 million, or about Rp1.54 trillion, in cash, to settle a proposed class action lawsuit against Siri.
