Apple Considering Three Locations in Indonesia for Its R&D Centers

Apple Considering Three Locations in Indonesia for Its R&D Centers
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Smartphone giant Apple is considering the greater Jakarta area, Bandung and Yogyakarta as potential locations for its research and development centers, which it must establish to comply with Indonesian regulations, a senior official said on Thursday (19/01).

The government has allowed Apple to sell its iPhone 7 in Indonesia this year after the United States-based company gave a commitment to establish local research and development centers.

A domestic investment of between Rp 550 billion and Rp 700 billion ($41 million-$52 million) would ensure that the smartphone maker complies with local content requirements. The government has stipulated that any new smartphone sold in Indonesia this year should have at least 30 percent of its total value in local content, consisting of either components or software, or both, compared with 20 percent in 2016.

Image: Jakarta Globe
Image: Jakarta Globe


Telecommunication and Information Technology Minister Rudiantara said Apple will establish one research and development center near the capital, but that the government has encouraged the company to also build facilities outside Java.

Industry Minister Airlangga Hartanto said earlier that two other locations would likely be Bandung in West Java and Yogyakarta. The government has set June this year as the deadline for Apple to establish the facilities.

Apple, which missed a chance to sell its iPhone 6 in Indonesia last year, has lost out to rival Samsung in securing Southeast Asia's largest smartphone market.

Samsung Indonesia vice president Lee Khang Hyun said his company's manufacturing plant and research and development center in Cikarang, West Java, helped it clear local content requirements. Samsung has also set itself a local content target of 40 percent this year, Lee said.

Samsung currently controls 26 percent of the Indonesian smartphone market, according to a report by global research firm International Data Corporation (IDC). China's OPPO is in second place with a 19 percent market share, followed by Taiwan's Asus with 9 percent.

Source : Jakarta Globe

Indah Gilang Pusparani

Indah is a researcher at Badan Perencanaan Pembangunan Penelitian dan Pengembangan Daerah Kota Cirebon (Regional Development Planning and Research Agency of Cirebon Municipality). She covers More international relations, tourism, and startups in Southeast Asia region and beyond. Indah graduated from MSc Development Administration and Planning from University College London, United Kingdom in 2015. She finished bachelor degree from International Relations from University of Indonesia in 2014, with two exchange programs in Political Science at National University of Singapore and New Media in Journalism at Ball State University, USA. She was awarded Diplomacy Award at Harvard World Model United Nations and named as Indonesian Gifted Researcher by Australian National University. She is Researcher at Regional Planning Board in Cirebon, West Java. She previously worked as Editor in Bening Communication, the Commonwealth Parliament Association UK, and diplomacy consulting firm Best Delegate LLC in USA. Less
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