DIGIVESTASI - Ministry of Industry: Apple’s IDR 1.58 Trillion Investment Offer Fails to Meet Fairness Principles, The Ministry of Industry has deemed Apple’s investment proposal of USD 100 million (approximately IDR 1.58 trillion) to sell the iPhone 16 in Indonesia insufficient, as it fails to meet the principles of fairness. This investment is significantly lower than the contributions of other vendors, such as Samsung, which has invested IDR 8 trillion, and Xiaomi, which has invested IDR 5.5 trillion in Indonesia.

Currently, Apple is prohibited from selling the iPhone 16 in Indonesia due to its failure to fulfill its previous three-year investment commitments. These commitments were a special condition allowing iPhone to remain the only imported smartphone permitted in the Indonesian market. However, Apple has yet to meet these obligations, leading the Ministry of Industry to withhold the Domestic Component Level (TKDN) certificate required to sell the iPhone 16.

Rather than settling its previous USD 10 million investment commitment, Apple proposed a new investment offer of USD 100 million.

“We have held meetings and, based on a technocratic evaluation and comprehensive calculations, the USD 100 million investment does not fulfill the principles of fairness,” stated Minister of Industry Agus Gumiwang Kartasasmita during a media briefing on Monday (November 25, 2024).

Four Criteria for Fairness

Agus outlined four criteria Apple must meet to ensure fairness:

1. Comparable Investment Levels
   Apple’s investment in Indonesia should match its investments in other countries, such as Vietnam, where it has established production facilities.

2. Comparable to Local Contributions
   The investment value should be on par with contributions made by other device manufacturers in Indonesia, such as Samsung and Xiaomi.

3. Significant Added Value
   The investment must generate substantial added value for Indonesia, including revenues from import activities.

4. Impact on Local Employment
   The investment should create tangible benefits in terms of domestic job creation.

“These are the principles of fairness we are formulating,” Agus explained.

Negotiations and Expectations

Agus added that the government has already determined the minimum investment figure that meets these fairness principles, though he did not disclose specifics. Apple’s investment proposal for the 2024–2026 period will undergo renegotiation, led by the Directorate General of Metals, Machinery, Transportation Equipment, and Electronics.

The government hopes Apple will consider an investment model that includes establishing a production facility in Indonesia.

Furthermore, Agus emphasized that resolving the previous USD 10 million investment commitment is key to unlocking the sale of the iPhone 16 in Indonesia.

“If the previous commitment is fulfilled, the iPhone 16 can be released. However, for the 2024–2026 proposal they submitted, the value still fails to meet fairness principles,” Agus concluded.

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