DIGIVESTASI - Until now, there has been no sign that the iPhone 16 series will officially enter Indonesia. In addition, Apple is also unlikely to build a factory in Indonesia, despite the government's hopes. 

Apple is the only foreign mobile phone manufacturer that has not yet established production in Indonesia, and it is unlikely that this will change in the near future. Minister of Communication and Information Technology (Menkominfo) Budi Arie Setiadi explained that it is unlikely that Apple will build a manufacturing plant in Indonesia. One reason is the incentives provided by other countries, such as Vietnam, which offers tax breaks of up to 50 years on the condition that Apple employs up to 200,000 people.

“In neighboring countries, tax holidays are given for 50 years, and land tax is exempted as long as they employ 200 thousand employees. Can we compete with that? Definitely not,” Budi said when met in Jakarta, Wednesday (9/10/2024).

Budi emphasized that Indonesia does not want to attract Apple investment, but other countries offer too many incentives that are difficult to compete with. This will also have an impact on the incentive policies given to other industries if Apple gets tax breaks.

When asked about Apple's contribution in meeting the Domestic Content Level (TKDN), Budi suggested contacting the Ministry of Industry (Kemenperin) because they know the TKDN calculation formula. 

Based on CNBC Indonesia's observation, until now, the iPhone 16 series has not been recorded on the Ministry of Industry's TKDN website. TKDN is an important requirement for foreign manufacturers to sell products with mobile networks in Indonesia.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita previously stated that Apple's TKDN validity period had expired and had not been extended. The government is still waiting for additional investment from Apple to extend TKDN certification.

Currently, Apple has only realized an investment of Rp 1.48 trillion, while the promised investment commitment is Rp 1.71 trillion. Thus, there is still a shortfall of Rp 240 billion.

“After they fulfill this commitment, we will issue a license for the sale of iPhone 16. This is for fairness for other investors who have invested heavily in Indonesia,” Agus explained at the Working Meeting of Ministries/Institutions and Business Entities as members of the National Team Working Group on the Use of Domestic Products (P3DN), Tuesday (8/10).

To date, Apple's investment in Indonesia is mostly in the form of Apple Developer Academy educational facilities in BSD, Sidoarjo, and Nongsa. During Apple CEO Tim Cook's visit to Indonesia, Apple also plans to open a fourth academy in Bali.

Agus hopes Apple will not only set up an academy, but also invest in a factory or research and development (RnD) center in Indonesia. If Apple fulfills these conditions, they will get a TKDN value of 40%, allowing iPhone 16 products and other Apple devices with cellular networks to enter the Indonesian market.

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