Surabaya, E. Java (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita is hoping that Apple will realize its planned investment of US$1 billion in Indonesia by building a factory.
"God willing, they (Apple) will take the first scheme, which is investment in production facilities," Kartasasmita said on the sidelines of the Industrial Fest 2024 in Surabaya, East Java, on Wednesday.
According to him, the Ministry of Industry has been intensively communicating with the Ministry of Investment and Downstream Industry to prepare the best scheme for supporting the investment plan of the American technology major.
The scheme, techniques, as well as industrial areas that will be offered to Apple still need to be determined, he said.
Baca juga: Menperin Agus Gumiwang ingin investasi Apple lewat skema bangun pabrik
"Later, we will help in such a way that Apple's investment can run well and smoothly as agreed, so that Apple can grow well in Indonesia by presenting production facilities or factory," the minister added.
He emphasized that Apple's decision to invest US$1 billion in Indonesia reflects the government's commitment to prioritizing the principle of justice in doing business.
The government rejected Apple's investment proposal worth US$100 million (around Rp1.58 trillion) as it was considered not comparable to the product units sold in Indonesia, whose number reached 2.5 million in 2023.
The proposed investment was also low compared to Apple's investment in Vietnam, which stood at around Rp140 trillion despite the Apple product market in the country pegged at just 1.5 million units.
In addition, the government saw that other manufacturers of mobile phones, handheld computers, and tablets had invested more and even built factories in Indonesia, for instance, Samsung, which invested Rp8 trillion, and Xiaomi, which pumped in Rp5 trillion.
"We also see how much contribution to the absorption of labor (was made) by each manufacturer," Kartasasmita pointed out.
Therefore, he said that Apple's plan to invest US$1 billion in Indonesia is also aimed at saving its large market share in the country.
"If they do not invest, they will lose because the distribution permit will not come from us. They will lose the market in Indonesia," he added.
