Indonesian Government and Apple Inc Sign Key Investment Cooperation Agreement
The Indonesian government and Apple Inc signed a Memorandum of Understanding (MoU) in South Jakarta, formalising a key investment cooperation agreement on February 26. This move paves the way for Apple to sell its iPhone 16 in Indonesia, as the Ministry of Industry begins the process of issuing the required Domestic Component Level (TKDN) certificate.
A Milestone in Negotiations
Industry Minister Agus Gumiwang Kartasasmita confirmed that the agreement marks a significant milestone after five months of challenging negotiations. "It was confirmed until the very last minute. Just 15 minutes ago, we were still finalising communications with Apple on several items to include in the MoU, as well as those we couldn’t," he said.
Resolving a Long-Standing Standoff
The MoU resolves a long-standing standoff that had seen the ministry withhold the TKDN certificate, blocking Apple’s ability to obtain distribution permits for its devices. With the agreement now in place, Apple can move forward with plans to officially sell the iPhone 16 in the republic.
Complicated Negotiations
The negotiations were complicated by conflicting interests, with technical teams from both the Ministry of Industry and Apple meeting on three separate occasions to discuss the extension of the TKDN certification. Agus Gumiwang emphasised that the deal would ensure that Indonesia’s domestic market benefits from Apple’s investment.
Apple’s Plans
Earlier this year, Apple’s vice president of Global Policy, Nick Amman, visited the ministry to discuss the company’s plans, including the construction of an AirTag factory in Batam to help meet the TKDN requirements.
Conclusion
The signing of the MoU is a significant step forward for both the Indonesian government and Apple, paving the way for the sale of the iPhone 16 in Indonesia. The agreement demonstrates the commitment of both parties to work together to promote economic growth and development in the region.
FAQs
Q: What is the significance of the MoU?
A: The MoU formalises a key investment cooperation agreement between the Indonesian government and Apple, allowing for the sale of the iPhone 16 in Indonesia.
Q: What is the TKDN certificate?
A: The TKDN certificate is a required document that ensures the domestic component level of a product meets local regulations.
Q: What are the next steps for Apple?
A: Apple can now move forward with plans to officially sell the iPhone 16 in Indonesia, subject to the issuance of the TKDN certificate.