Polemik Keadilan untuk Apple iPhone 16

Summary

The ongoing dispute between Indonesia and Apple revolves around the company's insufficient investment in local manufacturing and the government's strict TKDN requirements. Apple has pledged to increase its investment to $100 million and later $1 billion, but the Indonesian government demands more, including job creation and value-added contributions. With Apple prioritizing Vietnam for manufacturing, Indonesia remains a small part of its supply chain. This situation highlights the need for clear regulations and sustainable investments to improve Indonesia's competitive edge in the global tech industry while balancing protectionist measures with investor confidence.

Takeaways

• 😀 Indonesia is dissatisfied with Apple’s relatively small investment compared to its large investment in Vietnam, leading to a ban on the iPhone 16 entering Indonesia.
• 😀 Apple promised to increase its investment in Indonesia by $100 million USD, but the Indonesian government did not soften its stance, pushing Apple to offer a new $1 billion USD investment.
• 😀 The Indonesian government demands fairness in Apple’s investment, considering factors like the company’s contributions to job creation, value-added contributions, and its investment in local industries.
• 😀 Indonesia requires Apple to meet a local content requirement (TKDN) of 40% for the iPhone 16 to be sold in the country, with options to invest in local manufacturing, app development, or innovation.
• 😀 Apple has committed to investing in the Apple Academy and has pledged 1.71 trillion IDR, but only 1.48 trillion IDR has been realized so far.
• 😀 The government believes that the investment Apple has made in Indonesia is insufficient compared to its investments in other countries like Vietnam, which has created a substantial ecosystem for Apple’s supply chain.
• 😀 Despite offering significant revenue, Indonesia remains a consumption market for Apple rather than a production hub, with a large portion of Apple’s products still being imported.
• 😀 Apple’s investment proposal is still under discussion, with plans to establish a production facility and potentially transition to a manufacturing-based model in Indonesia, with talks expected to continue until 2026.
• 😀 The government aims to encourage Apple to establish more manufacturing operations in Indonesia, which could create thousands of jobs and integrate Indonesia into the global supply chain.
• 😀 Indonesia faces challenges in attracting foreign investment, especially in the tech sector, due to issues like inefficient regulations, corruption, and the lack of skilled labor, which need to be addressed to become a competitive investment destination.

Q & A

Why is the Indonesian government dissatisfied with Apple's investment in the country?

The Indonesian government is dissatisfied because Apple's investment in the country is significantly smaller compared to its investments in other countries like Vietnam. This disparity has led to tensions, especially as Apple has not met the required domestic content investment criteria to allow the sale of iPhone 16 in Indonesia.

What is the key requirement for Apple to sell the iPhone 16 in Indonesia?

Apple must meet a domestic content requirement (TKDN) of 40% to sell the iPhone 16 in Indonesia. This is a key condition set by the Indonesian government.

What are the three investment schemes available for Apple to meet the TKDN requirement?

The three investment schemes available for Apple are: 1) establishing a manufacturing plant in Indonesia, 2) creating locally based applications, and 3) innovating through technological development, such as the Apple Academy.

How has Apple attempted to meet Indonesia's investment requirements so far?

Apple has chosen the innovation route by establishing the Apple Academy and committing to invest in educational programs. However, the promised investment of IDR 1.71 trillion (USD 100 million) has not been fully realized, with a shortfall of approximately IDR 230 billion.

What are the four criteria the Indonesian government uses to assess fairness in Apple's investments?

The four criteria the government uses to assess fairness in Apple's investments are: 1) the comparison of Apple's investment in Indonesia to other countries, 2) Apple's contribution to value-added production, 3) the creation of local jobs, and 4) comparison with investments by other global tech brands in Indonesia.

How does Indonesia compare to Vietnam in terms of Apple's investments?

Vietnam has received much larger investments from Apple, with Apple having more than 200,000 workers in the country and running 28 factories. In contrast, Indonesia has seen minimal investment, with Apple only having two suppliers in the country and no major manufacturing presence.

What is the government's expectation regarding Apple's investments in Indonesia?

The government expects Apple to make a significant investment that would contribute to building a local manufacturing industry, integrating into the global supply chain, and creating thousands of jobs, similar to what Apple has done in Vietnam.

Why do some critics argue that the TKDN regulation may be ineffective?

Some critics argue that the TKDN regulation is often just a formality and does not lead to meaningful development of the local industry. They point out that some sectors, like electronics and automotive, have met high TKDN standards by importing finished goods and reassembling them in Indonesia, rather than fostering local production.

What challenges do global companies face when investing in Indonesia, according to industry experts?

Global companies face challenges in Indonesia due to strict regulations, particularly the TKDN requirement, and the difficulty of sourcing high-quality local components. The lack of skilled labor and the high cost of doing business are additional factors that make Indonesia less attractive for investment compared to other countries like Vietnam and India.

What is the Indonesian government's plan to improve the investment climate in the country?

The government is revising the TKDN regulation and aiming to create a more favorable investment climate by improving legal certainty, reducing corruption, and enhancing industrial competitiveness. The focus is also on boosting skilled labor and fostering innovation to make Indonesia a more attractive destination for global companies.