Welcoming investment, tech opportunities following Apple negotiations

Jakarta (ANTARA) - Apple enthusiasts in Indonesia will soon see an end to their long wait as the US giant technology company, Apple, finalized negotiations with the Indonesian government over the Domestic Component Level (TKDN) certificate.

With the successful conclusion of negotiations, Apple is now officially authorized to sell its latest product, the iPhone 16, in the country. Later, the Ministry of Industry will issue the TKDN certificate, while the Ministry of Communication and Digital will issue the distribution permit for the iPhone 16.

This agreement is vital in showcasing Indonesia’s diplomacy, which is increasingly being considered in the global technology industry supply chain.

Indonesia's strict enforcement of regulations initially prevented the company from selling the iPhone 16.

Industry Minister Agus Gumiwang Kartasasmita admitted that negotiations with Apple were challenging as both parties were persistent in their respective interests, with the tug-of-war process lasting 5 months.

This agreement also resulted in a long-term impact, namely, Apple's investment in research and development in Indonesia, which can potentially change the face of the domestic technology industry.

The results of the negotiations include Apple's plan to invest US$160 million to extend TKDN in the new cycle.

The company will establish a research and development (RnD) facility in Indonesia, the Apple Software Innovation and Technology Institute, and the Apple Professional Developer Academy.

Indonesia will thus become the first country in Asia and the second outside the United States (US) to have an Apple research and development (R&D) facility.

So far, Apple has built an R&D facility in the US and Brazil.

This investment presents an opportunity that must be leveraged carefully.

Apple is more than just a technology company; it is a symbol of innovation, a leading tech giant, and a research and product design pioneer capable of transforming the world.

Apple's decision to invest in Indonesia, establish an R&D center, and develop the Apple Software Innovation and Technology Institute reflects its recognition of Indonesia as an important part of the global technology ecosystem.

Alternatively, is this investment driven by Apple's desire to not miss out on Indonesia's large market of 280 million people?

Indonesia has faced a longstanding issue in its domestic technology industry: the gap between technology users and creators.

Although this country has many technology users, it still lacks sufficient innovators and engineers to produce globally recognized products.

Apple's investment in this sector should not only be viewed as a strategic business step but also as an opportunity to improve the innovation ecosystem in Indonesia.

If managed well, Apple's R&D center can become an incubator for local talents, paving the way for a new generation of software developers and hardware engineers.

However, the government, academics, and local industry must take proactive steps to ensure Apple's investment has a long-term impact on Indonesia.


Technology transfer

One of the most applicable recommendations is to build a partnership model that allows for real technology transfer.

Deputy Chairperson of Commission VII of the Indonesian House of Representatives (DPR RI) Chusnunia Chalim expressed her support for the government's efforts to ensure this investment provides real benefits for the national technology industry, especially in developing digital talent and the innovation ecosystem.

The government can mandate Apple to collaborate with universities and research institutions in Indonesia, create internship programs for students, and open access for local startups to learn from Apple-applied global industry standards.

On the other hand, regulations must also be adapted to maximize the benefits from this investment. One of the biggest challenges in Indonesia's technology investment is the lengthy bureaucratic process and the absence of an ecosystem supporting the growth of research-based industries.

The government should create more familiar policies for investors in the technology sector, including providing incentives for companies that contribute to developing human resources and the domestic innovation ecosystem.

Without concrete encouragement from the government, Apple's investment might remain merely a historical note without any real impact on the local technology industry.

Furthermore, the readiness of the Indonesian workforce to welcome this opportunity is also often overlooked.

With the presence of Apple's R&D center, the need for skilled workers in programming, product design, and hardware development will increase.

Hence, the government must promptly invest in vocational education focused on technology, strengthen the relevant curriculum to align with the global industry standards, and accelerate workforce training to match the research-based industry's needs.

One concrete step to consider is increasing the number of skills certification programs that meet international standards.

Many global technology companies offer training and certification programs that can help improve the competence of the local workforce.

Government encouragement of Apple's greater involvement in Indonesian workforce training could benefit communities through enhanced human resource quality and increased local industry competitiveness.


Paving the way

The negotiations also agreed on establishing a Luxshare factory in Batam to produce AirTag accessories.

The government must ensure this production involves local companies in its supply chain, including providing components and raw materials.

This momentum can become a starting point for Indonesia to foster its innovation-based technology industry. With Apple paving the way, Indonesia should continue the progress.

One strategy to be implemented is encouraging more local technology companies to collaborate with Apple and other global companies.

Tech startups in Indonesia should view this as an opportunity to learn from the world's best industry standards and integrate them into their product development processes.

Success must be measured by the ability of this investment to change the landscape of the domestic technology industry, improve the quality of human resources, and create a sustainable innovation ecosystem.

Ultimately, the agreement between Apple and the Indonesian government could mark the start of a significant change or remain a mere business event.

The outcome depends on how Indonesia chooses to manage such investments. If Indonesia merely acts as a passive consumer, there will be little impact on the country’s technology development.

However, if the public perceives this as momentum to build a stronger future for the technology industry, then this investment could be the start of something bigger.

This is not just a matter of trade but also about Indonesia positioning itself in the global technology landscape.