SURABAYA (E. Java): Industry Minister Agus Gumiwang Kartasasmita (pic) is hoping that Apple will realise its planned investment of US$1 billion in Indonesia by building a factory, reported Indonesian News Agency (Antara).
"God willing, they (Apple) will take the first scheme, which is investment in production facilities," Agus said on the sidelines of the Industrial Fest 2024 here 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 and techniques, as well as industrial areas that will be offered to Apple still need to be determined, he said.
"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 emphasised that Apple's decision to invest US$1 billion in Indonesia reflects the government's commitment to prioritising the principle of justice in doing business.
The government rejected Apple's investment proposal worth US$100 million 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 140 trillion rupiah 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 eight trillion rupiah, and Xiaomi, which pumped in five trillion rupiah.
"We also see how much contribution to the absorption of labour (was made) by each manufacturer," Agus pointed out.
Therefore, he said 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. - Bernama-Antara
