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January 5, 2025 | 09:18 am
TEMPO.CO, Jakarta - Indonesia's Minister of Industry Agus Gumiwang Kartasasmita has anticipated challenges when negotiating with Apple Inc. officials which are scheduled to take place between January 7 or 8, 2025. Agus predicts that Apple will seek the greatest profit they can get from investing in the country.
"Negotiations will not be easy. Apple will put their interests first, what we can read is how much profit," said Agus on Friday, January 3, 2025. With that awareness, he stated that the Indonesian government will also uphold the principles of justice in considering investment proposals from the technology company.
The principles referred to by Agus include paying attention to Apple's investment in other countries; investment by other manufacturers of mobile phones, handheld computers and tablets (HKT) in Indonesia, added value and income for Indonesia and absorption of labor here. Therefore, Agus claims that the Ministry of Industry will use a special strategy that he thinks will be successful.
Agus has prepared a negotiating team that will be led by the Director General of the Metal, Machinery, Transportation Equipment and Electronics Industry (ILMATE). "How to find common ground, a win-win solution between the government and Apple is an art in itself of negotiation," he said.
In addition to having to negotiate with the Ministry of Industry, he said that Apple also needs to face representatives of the Ministry of Investment and Downstream/BPKM.
Previously, the Ministry of Industry had confirmed the agenda for business negotiations with Apple's top brass next week. This follows the discourse on Apple's investment that had stalled in Indonesia. Apple previously planned to invest US$100 million or around Rp1.61 trillion (exchange rate of Rp16,146.25 per US dollar).
This investment aims to meet the Domestic Component Level (TKDN) required by the government. However, the Minister of Investment/Head of BKPM Rosan Roeslani asked them to increase their investment commitment to US$1 billion or equivalent to Rp16.14 trillion.
The Ministry of Industry has prepared two investment schemes for Apple. The scheme requires Apple to choose between building a manufacturing plant in Indonesia or investing in innovation through a three-year proposal submission.
"The government is encouraging Apple to use scheme 1, namely investment in production facilities or factories," said Ministry of Industry Spokesperson Febri Hendri Antoni Arif in an official statement on Thursday, January 2, 2025. However, if Apple is more interested in the innovation investment scheme, Febri is ready to provide technocratic calculations so that the distribution permit for Apple's iPhone 16 product can be issued.
Oyuk Ivani Siagian contributed to the writing of this article.
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