Jakarta (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita on Wednesday announced that Indonesia has reached an agreement with Apple on extending the US technology giant's domestic component level (TKDN) certification.

This clears the way for the company to officially sell its products in Indonesia.

"With the completion of the negotiations between the Ministry of Industry and Apple, as stated in the MoU document, the process of issuing the TKDN certificate for Apple can begin," Kartasasmita said at a press conference on Wednesday.

He informed that the negotiations with Apple lasted five months and were considered tough since both parties defended their respective interests.

Once his party issues a TKDN certificate for Apple, a distribution permit for the iPhone 16 series will be granted by the Ministry of Communication and Digital Affairs.

From the negotiations on the extension of the TKDN certification for Apple, Indonesia managed to generate several profitable agreements, Kartasasmita said.

The agreements include Apple investing US$160 million for the extension of TKDN in the new cycle.

Furthermore, the company will build a research and development (RnD) facility in Indonesia, the Apple Software Innovation and Technology Institute, and the Apple Professional Developer Academy, the minister informed.

According to him, the establishment of the facility is due to Apple's decision to extend the TKDN certificate in Indonesia under the third investment scheme option it was offered, namely innovation.

"We have agreed that Apple's innovation investment that follows the three schemes (innovation) will be worth US$160 million in hard cash," Kartasasmita disclosed.

In addition, he said that as of December 16, 2024, Apple had paid the remaining debt of US$10 million for the realization of the TKDN extension for the 2020–2023 period.

Meanwhile, to pay the sanctions laid down in the Regulation of the Minister of Industry Number 29 of 2017 concerning the Provisions and Procedures for TKDN Calculation, Apple brought a global value chain (GVC) company to invest in Indonesia.

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Translator: Ahmad Muzdaffar, Resinta Sulistiyandari
Editor: Azis Kurmala
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