Jokowi Appoints Luhut as Coordinator of Apple's Investment in IKN

TEMPO.CO, Jakarta - President Joko Widodo or Jokowi has appointed Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan as the coordinator for Apple's investment in IKN Nusantara. The appointment is in relevance with Luhut's status as chairman of the Investment Acceleration Task Force at IKN since May 2023.

Luhut has been tasked with coordinating related institutions to ensure that the acceleration of investment in IKN is done efficiently.

"The technicality (of the investment) is with the ministry," Industry Minister Agus Gumiwang said after accompanying Jokowi to meet with Apple's CEO at the Presidential Palace in Jakarta on Wednesday, April 17.

The government continues to encourage value-added investments, including from Apple. Apple's investment program in Indonesia has so far been calculated at a local content level (TKDN) of 35 percent.

Last year, 50 million units of gadgets were produced in Indonesia, of which 2.8 million units were imported, 85 percent of which were Apple products. The value of gadget imports last year was US$2 billion or Rp34 trillion.

Jokowi Asks Tim Cook to Invest

Minister of Communication and Information Budi Arie Setiadi said that during his meeting with Apple CEO Tim Cook last night, President Joko Widodo asked the U.S. technology giant to invest in a number of projects in the country.

Budi Arie said Jokowi wants Indonesia to be more than just a market for Apple products, but also to become part of its global supply chain, thus his appeal for the tech giant to invest in manufacturing. Jokowi also asked Cook to invest in IKN Nusantara, especially in the development of smart city infrastructure.

According to Budi, Apple has shown its commitment and seriousness in developing smart city technology at IKN. However, no investment amount has been agreed or promised. "The details are being discussed, including whether incentives are needed for Apple," he said at the ministry's office on Wednesday.

After meeting with Jokowi, Tim Cook said Indonesia was an important market for Apple. Apple will look at the investment potential in Indonesia, including considering building Apple’s manufacturing and assembly facilities in the country. 

“I think the investment ability in Indonesia is endless. I think that, there is a lot of great places to invest, and we’re investing. We believe in the country,” Cook said.

After meeting Jokowi, Tim Cook met with Prabowo Subianto.

Apple Developer Academy

So far, Apple has only decided to build an Apple Developer Academy in Bali. According to Budi, the investment value for the academy’s construction reached Rp1.2 trillion.

The Apple Developer Academy is a training center for developers, students and entrepreneurs who want to start their career in the iOS application industry. There are currently three Apple Developer Academies in Indonesia, located in Batam, Surabaya, and BSD Tangerang.

RADEN PUTRI | DANIEL A FAJRI | RIANI SANUSI PUTRI

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