The industry minister emphasizes the value of substance in ongoing discussions with Apple over local content, with no deadline in sight.

The Industry Minister Emphasizes

The industry minister emphasizes the value of substance in ongoing discussions with Apple over local content, with no deadline in sight.

In investment talks with Apple. The Ministry of Industry did not impose a deadline on the company to meet the Domestic Content Level (TKDN) criteria for its newest gadgets to be sold in Indonesia.

Following a series of talks with officials of the US technology giant at his office on January 7-8, 2025. Industry Minister Agus Gumiwang Kartasasmita communicated this.

In a written statement obtained by Tempo on Thursday, January 9, 2025, Agus stated. What is targeted is the fulfillment of the negotiated substance.”

The Industry Minister also underlined that the value of fixed capital expenditures. Such as buildings, land, technology, and machinery, is the only way to determine the investment value. It excludes the value of exports as well as input expenses like wages and the cost of raw materials.

He underlined that “no effort should be made to determine the value of investment outside of capital expenditures. Such as by incorporating the estimated value of exports or variable components of raw materials.”

Apple Had Chosen The Third Plan Or Innovation Scheme

For the 2023–2026 term, which is the same as the 2020–2023 period. In order to make an investment proposal. Apple’s investment amount, however, is still less than what the Ministry of Industry had anticipated.

“Apple is still debating internally after the Ministry of Industry offered a counter proposal and an investment amount that was meticulously and technocratically prepared,” he said.

The Ministry of Industry establishes certain criteria in the counter-proposal that are used to determine the investment value. The development of added value and state revenue, investment equity among Indonesian makers of computers, tablets, and mobile phones, and a comparison of Apple’s investments abroad are some of these factors.

Furthermore, Apple’s sales of Rp 56 trillion in 2023–2024, the impact of adding jobs to the industrial ecosystem, and the implementation of administrative punishments in accordance with Minister of Industry Regulation Number 29 of 2017 are all taken into account by the Ministry of Industry.