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January 9, 2025 | 04:31 pm
TEMPO.CO, Jakarta - The Ministry of Industry does not set a time limit in investment negotiations with Apple to fulfill the Domestic Content Level (TKDN) requirement for its latest gadget products to be circulated in Indonesia. This was conveyed by Industry Minister Agus Gumiwang Kartasasmita after a series of meetings with representatives of the US technology giant at his office, on January 7-8, 2025.
"What is targeted is the fulfillment of the negotiated substance," Agus said in a written statement received by Tempo, Thursday, January 9, 2025.
The Minister of Industry also emphasized that the investment value can only be calculated from the value of fixed capex such as land, buildings, and technology or machinery. It does not include the value of exports and input costs such as raw material costs and wages.
"There should be no attempt to calculate the value of investment outside of capex, for example including the projected value of exports or variable components of raw materials," he emphasized.
During the two-day negotiation yesterday, Agus revealed that Apple submitted an investment proposal for the 2023-2026 period by choosing the third scheme or innovation scheme, the same as the 2020-2023 period. However, the investment figure submitted by Apple is still below the Ministry of Industry's expectations.
"The Ministry of Industry has submitted a counter proposal and an investment figure that is calculated technocratically and carefully, and is now still being discussed internally by Apple," he said.
In the counter-proposal, the Ministry of Industry sets a number of criteria on which the investment value is calculated. These criteria include a comparison of Apple's investment in other countries, investment equity among mobile phone, computer, and tablet manufacturers in Indonesia, and the creation of added value and state revenue.
In addition, the Ministry of Industry also considers the impact of creating new jobs in the industrial ecosystem, Apple's sales reaching Rp 56 trillion in 2023-2024, and the application of administrative sanctions following the provisions of Minister of Industry Regulation Number 29 of 2017.
DEFARA DHANYA | ZACHARIAS WURAGIL
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