Industry Minister: Apple Products to Be Cheaper If Made in Indonesia

TEMPO.CO, Jakarta - Indonesian Industry Minister Agus Gumiwang Kartasasmita stressed the government’s determination to be part of Apple’s global supply chain. He assessed that the fabrication process being carried out in the country could potentially reduce the cost of Apple products. 

He expressed this view after accompanying President Joko Widodo or Jokowi to meet with tech giant's CEO Tim Cook at the Jakarta Merdeka Palace on Wednesday, April 17. They discussed the investment potential of the U.S.-based multinational company in Indonesia.

“The price of Apple products will go down, but the most significant [benefit] is that it will create employment opportunities and increase Indonesia's added value,” Agus said.

In a separate statement issued after the hour-long meeting, Cook described Indonesia as a crucial market for Apple. “We talked about the president's desire to see numerous factories established in this country, and that's something we're going to work on,” he said.

Besides discussing investment potential, Cook announced that Apple has expanded its developer academy in Bali, which is a boot camp and scholarship program designed to help participants become world-class developers in the Apple ecosystem.

Indonesia is keen to create value from investment, including from Apple. Apple's investment program will be calculated with a local content requirement (TKDN) of 35 percent.

Agus further added that Jokowi also hopes to see the development of an Apple manufacturing plant in Indonesia using domestic components.

During 2023, Indonesia produced nearly 50 million units of mobile phones and imported 2.8 million units, of which at least 85 percent were Apple products. The total value of imported gadgets amounted to US$2 billion or Rp34 trillion.

DANIEL A. FAJRI

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