DIGIVESTASI - The Indonesian government will meet with Apple representatives today to discuss investment negotiations. Economist and Professor at the Faculty of Economics and Business, University of Indonesia, Telisa Aulia Falianty, is encouraging Apple to build a factory in Indonesia.

Telisa explained that investment in the manufacturing sector through the construction of a factory would have a significant impact on the economy. She mentioned that smartphones, including the iPhone, are one of the main contributors to the trade deficit in Indonesia. "I fully support the Ministry of Industry's initiative. The iPhone is one of the largest imports in the smartphone sector. To reduce imports, there needs to be an opening for Foreign Direct Investment (FDI), and we hope for a technology transfer," said Telisa in a statement on Tuesday (7/1).

Telisa believes that job opportunities could be created starting from hardware assembly, with the potential to develop further as human resource skills improve. She also suggested that the government prepare a middle-ground solution to encourage the Domestic Component Level (TKDN) and fulfill Apple's requirements in Indonesia.

Telisa assesses the projected Apple investment of USD 1 billion, or about IDR 16.1 trillion, as still insufficient, given Apple's sales in Indonesia already reaching trillions of rupiah. She suggested that the investment should be made in stages, beginning with the hardware phase, followed by software, and finally, more advanced digital technologies. "The first phase should ideally be more than USD 1 billion, perhaps three times that," she said.

Telisa also added that in order to realize high-tech manufacturing investments like Apple's, the Ministry of Industry (Kemenperin) cannot work alone. Support is needed in terms of legal certainty, human resource and digital talent development, as well as robust cybersecurity systems.

The Ministry of Industry's plan to raise the minimum TKDN for mobile phones from 35% to 40% is also a strategic move, amid the rise of protectionism in many countries, including under the elected US President Donald Trump. Telisa believes that increasing TKDN could open more job opportunities and support the development of the digital industry. "A 40% TKDN level is still realistic for businesses to achieve, and this policy could be more acceptable in the era of Trump’s protectionism," she added.

Today's meeting between Minister of Industry Agus Gumiwang Kartasasmita and Vice President of Global Policy at Apple, Nick Amman, will discuss Apple's investment plans in Indonesia. Further discussions on this investment will also affect the issuance of TKDN certificates for Apple products and sales permits in Indonesia.

The Minister of Industry encourages Apple to opt for investment scheme 1, which involves building production facilities or factories, with the hope of creating job opportunities. Previously, Apple chose investment scheme 3 by establishing an Apple Academy in Indonesia. "We are encouraging Apple to choose the factory development scheme so that new jobs can be created," said the Minister of Industry in a text message on Tuesday (7/1).

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