The Indonesian Ministry of Industry says: Apple's investment proposal worth Rp1.58 trillion is still not considered fair
Minister Agus Gumiwang Kartasasmita finally spoke out about Apple's latest investment proposal. He said the offered investment of Rp1.58 trillion is still not deemed fair.
"After today's leadership meeting and reviewing the proposal submitted by Apple, the Ministry of Industry felt that the proposal does not yet meet the four aspects of fairness," said Minister Agus Gumiwang.
The Minister explained that first, compared to Apple's investments in other countries, they do not yet have factories or production facilities in Indonesia. Second, there is a comparison with investments from other HKT brands in Indonesia. Third, about the creation of added value and state revenue. And finally, the importance of creating jobs in Indonesia.
The Minister also emphasized that Apple must complete its remaining investment commitments by 2023. This outstanding payment will not be discussed in the new proposal. Discussions for the new proposal only apply to Apple's obligations from 2024 to 2026 in order to obtain the Domestic Component Level (TKDN) certificate.
"Apple is required to discuss the proposal every 3 years as a consequence of their investment decision to choose the innovation scheme to obtain the TKDN certificate," said Minister Agus Gumiwang.
Furthermore, the Minister stated that the Ministry of Industry, through the Directorate General of ILMATE, will soon summon representatives from Apple to come to Indonesia to discuss the settlement of investment commitments for 2023 and the new proposal for 2024-2026.
He also added that the Ministry of Industry feels that Apple should immediately establish production facilities or factories in Indonesia, so that it does not need to submit investment scheme proposals every 3 years.
On the other hand, the Minister revealed that his office has begun to revise Permenperin No.29 of 2017 concerning the Provisions and Procedures for Calculating the Domestic Component Level for cellular phone, handheld computer, and tablet computer products. This is being done because the conditions of the HKT industry are significantly different and to ensure the principles of fair investment.
