The investment plan, according to the minister, is not directly related to the manufacturing of mobile phones, handled computers, and tablets, which is a requirement for obtaining the domestic component level (TKDN) certification from the Indonesian Government.
"If we look at the regulation, it (iPhone 16) is not allowed yet (to enter the Indonesian market). The Ministry of Industry has no basis to be able to issue TKDN certification in order for Apple to have a distribution permit in Indonesia," he explained here on Wednesday.
During the negotiation between the ministry's technical team and Apple in Jakarta on Tuesday, the US technology giant submitted a proposal to fulfill the TKDN certification requirement through the third scheme of advancing innovation.
However, the figure offered by the company was not in keeping with the four principles of justice set by the Ministry of Industry.
The four principles included a comparison of Apple's investment in other countries; investment in mobile phones, handheld computers, and tablets by other manufacturers in Indonesia; added value and income for Indonesia; and absorption of labor in the ecosystem.
"We told them that the value proposed by Apple in following this third scheme is still below what is considered technocratic," Kartasasmita emphasized.
On Tuesday, Minister of Investment and Downstreaming Rosan Roeslani announced Apple's plan to establish an AirTag vendor factory in Batam, Riau Islands, with an investment of USD1 billion.
The announcement was made following a meeting with Apple's vice president of global policy, Nick Amman, in Jakarta.
Apple's investment commitment is expected to create up to two thousand jobs.
Amman is currently in Jakarta for investment negotiations with the Indonesian government. The negotiations aim to extend the TKDN certification for Apple products so that the company can officially sell its latest offering, the iPhone 16, in the Indonesian market.
Related news: Apple to build AirTag factory in Indonesia: govt
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Translator: Ahmad Muzdaffar Fauzan, Yashinta Difa
Editor: Rahmad Nasution
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