• Wednesday, 22 November 2017

Local Component Regulation Captive Tech Companies

Kominfo, riset dan teknologi, Apple. Google

After Local components regulation (TKDN) announced, giant tech company Apple planning to build research and development (R&D) Center in Indonesia. This step followed by a discussion between the Minister of Communications and Information Technology Rudiantara. This discussion between the Minister and Apple taken while a visit to Silicon Valley, San Francisco.

In this visit, Rudiantara announce that the company chief Tim Cook still have to discuss the details, when and where the realization took place. In the meantime, this R&D agreement still remain as a concept. “Apple agree to build an R&D center here in Indonesia. Maybe it will be similar to Brazil’s concept. We haven’t decided which city will be picked, the more the merrier,” says Rudiantara.

Moreover, three Indonesian telecommunication companies participated in Google’s giant balloon. This world’s biggest search engine will flew the device with a help of an air balloon in 20 kilometer height on top of Indonesian land. This project called Project Loon, build to widen internet access through radio antennas fitted on top of a building. Loon project intended to open access for citizen who lives in the rural areas which contours of the land are difficult to reach.

Around 30% local content regulations details still discussed in the Ministry of Industry. The discussion divided into two focuses. First, the development of R&D and the blue print. Second, discuss about manufacture that also divided into two points which are software component and hardware components.

Furthermore he says, international companies started to glance at Indonesian market and seems to be planning to expand their factories to the country. For information, timber is one of the main material used to make iPhone casing and also for the other Apple products. Regarding this, Rudiantara chose not to comment and says it is not his right to speak.

“No, I know nothing about this matter. I have not heard it before. If there is such discussion, certainly I am not there,” he added. Before, a number of smartphone manufactures agreed to build factories in Indonesia which are some companies like Oppo, Samsung, and Sony. Heading ASEAN Economic Community (MEA) 2016, foreign companies started to seek big opportunities in Indonesian technology market. The risks and opportunities regarding this matter still needs to be reviewed.

Grace Eldora

Grace Eldora Sinaga is a journalistic practitioner, graduated from Faculty of Communication Study Majoring Journalism, Unpad. She loves to learn Asian cultures and photography. She can be contacted at gracel@buminawa.com or twitter @glaceldo.