BANDUNG, SEATIZENS – Apple has made a challenging request to the Indonesian government: a 50-year tax holiday in exchange for investing in local manufacturing facilities. Currently, Apple remains the only major smartphone manufacturer that has not opened an assembly plant in Indonesia. Minister of Communication and Information, Budi Arie Setiadi, indicates that the chances of Apple building an assembly facility in Indonesia are very slim.
Budi explained that Apple has received significant incentives in Vietnam, prompting the company to invest there. One notable incentive includes a 50-year tax holiday and tax exemptions for land, provided the company employs around 200,000 workers. “When neighboring countries offer such favorable terms, can we really compete? It’s unlikely,” he said during a recent meeting in Jakarta.
Considerations for Domestic Content Requirement
While Apple is innovating to meet the Domestic Content Requirement (TKDN), Budi directed media inquiries on the calculation to the Ministry of Industry. “The formula for TKDN is under the Department of Industry’s purview,” he explained.
Minister of Industry Agus Gumiwang Kartasasmita pointed out that Apple’s TKDN status has expired and has not yet been renewed. To facilitate a renewal, the government awaits further investment realizations from Apple. The company has currently invested Rp 1.48 trillion, which Agus considers relatively small compared to the number of Apple products entering the Indonesian market.
Future Sales Permits for the iPhone 16
“We will issue a sales permit for the iPhone 16 once Apple fulfills its investment commitments. This decision is based on fairness to other investors who have significantly invested in Indonesia,” Agus stated during a meeting with various ministries and agencies part of the National Team for the Utilization of Domestic Products (P3DN).
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As the situation unfolds, the future of Apple in the Indonesian market depends heavily on its ability to meet local investment requirements and commitments.
(Firyal Trinidad)
