BANDUNG, SEATIZENS – Apple Inc. plans to invest $10 million (approximately IDR 158 billion) to meet Domestic Component Level (TKDN) regulations to sell the iPhone 16 in Indonesia.
This investment helps Apple comply with local regulations, which is essential for distributing its products in the country.
Apple will build a factory in Bandung, West Java. This factory will produce various accessories and components for iPhones. Several local suppliers will support this production.
This move will meet Apple’s needs and positively impact the local industry by creating job opportunities.
Deputy Minister of Industry Faisol Riza mentioned that Apple has communicated with the government about the factory’s construction.
“We support Apple’s efforts to strengthen its investment in Indonesia. This fits with our goal to increase foreign investment in the technology sector,” Faisol stated.
Aspirations for Research and Development Centers
Minister of Industry Agus Gumiwang hopes Apple will also establish a research and development (R&D) center in Indonesia. A
n R&D center will provide long-term benefits for both Apple and local technological development.
“We want to see more innovations come from Indonesia, and an Apple R&D center could contribute to this growing ecosystem,” Agus said.
Sales Approval Challenges for iPhone 16
Earlier, the approval process for selling the iPhone 16 in Indonesia faced delays. Apple could not meet the agreed investment commitment of IDR 240 billion, which fell below the government’s target.
Apple also requested a 50-year tax exemption, but the government denied this request. The government emphasized the importance of adhering to tax regulations.
Currently, Apple’s investment in Indonesia stands at only IDR 1.48 trillion. This amount is significantly lower than investments in neighboring countries, with Vietnam reaching IDR 256 trillion and Singapore at IDR 4 trillion.
These figures illustrate the significant challenges Apple faces in navigating local policies that prioritize local component use.
Read also : Thailand is intensifying efforts to enforce stricter regulations on illegal factories
With an additional investment of IDR 158 billion, Apple demonstrates its commitment to complying with TKDN regulations and adapting to local policies.
Building a factory in Bandung is a key step toward meeting local demand and enhancing Apple’s presence in the Indonesian market. Moreover, establishing an R&D center could promote technological development in the country and lead to more innovations.
Apple aims to strengthen its position in Indonesia amidst challenges and competition from other technology companies. The Indonesian public and government hope that these steps will yield long-term benefits for economic growth and the local technology sector.
(Firyal Trinidad)
