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Apple’s Investment Proposal in Indonesia Has Not Fulfilled 4 Aspects of Justice

by Editor Asiatoday
November 26, 2024
in Business
Reading Time: 2 mins read
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Apple’s Investment Proposal in Indonesia Has Not Fulfilled 4 Aspects of Justice

FILE PHOTO: Apple headquarters.

ASIATODAY.ID, JAKARTA – Apple’s investment plans in Indonesia have not been decided by the country’s government.

The reason is, after studying the proposal proposed by Apple, through a technocratic assessment, the Indonesian Ministry of Industry considers that the proposal submitted by Apple does not meet the four aspects of justice.

First, based on a comparison of Apple’s investment in countries other than Indonesia. Currently, Apple has not invested in production facilities/factories in Indonesia.

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Second, a comparison of investment in other HKT brands in Indonesia.

Third, creating added value and state revenue. Lastly, job creation in Indonesia.

“Based on today’s leadership meeting, a reasonable value has been decided for Apple to make additional investment based on these fair aspects,” said the Indonesian Minister of Industry, Agus Gumiwang Kartasasmita, Monday, November 25 2024.

On the other hand, the Ministry of Industry still requires that Apple pay off the remaining investment commitment until 2023. The remaining payment of this commitment is not part of the discussion of the new proposal. The discussion of the new proposal applies to Apple’s 2024-2026 obligation to obtain a Domestic Component Level (TKDN) certificate.

Apple has an obligation to discuss proposals every 3 (three) years as a consequence of Apple’s investment decision to choose an innovation scheme to obtain a TKDN certificate.

The Ministry of Industry, through the Director General of the Metal, Machinery, Transportation Equipment and Electronics Industry, immediately summoned Apple to come to Indonesia to discuss repayment of investment commitments in 2023 and new proposals for 2024-2026

The Ministry of Industry considers that it would be better for Apple to immediately set up a production facility/factory in Indonesia so that it does not have to submit an investment scheme proposal every 3 (three) years.

The Ministry of Industry has started the process of discussing the revision of Minister of Industry Regulation No. 29 of 2017 concerning Provisions and Procedures for Calculating the Value of Domestic Component Levels for Cellular Telephone, Handheld Computer and Tablet Computer Products, with the consideration that the HKT industrial landscape is very different and to enforce fairness investment principles. (AT Network)

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