US builder to invest $18 million, Malaysian content provider to invest $10 million

The Investment Coordinating Board (BKPM) stated that one of the manufacturing companies gadgets a well-known American origin who will build a research facility worth $18 million (or Rp. 240 billion). It was also reported that content providers from Malaysia will disburse $10 million (Rp 130 billion).

Head of BKPM Franky Sibarani explained that this US company would form a research and development (R&D) center which includes facilities, assembly, equipment, and recruitment to assist and nurture Indonesian human resources to develop applications and product designs.

"They [the US company] are targeting young Indonesian human resources to be trained as application developers in order to be able to contribute to the growth of the nation's digital economy," said Franky, citing Deal Street Asia (29/3). In the report, Franky did not mention the name of the company, but based on the explanation from the Minister of Communication and Information, Rudiantara, Apple Inc has plans in that direction.

Apple's plan also seems to be a scheme as a form of fulfilling the TKDN (Domestic Content Level) set by the government aimed at importing vendors who want to enter the Indonesian market. The TKDN policy itself will set vendors to assemble 4G devices up to 40% as of January 1, 2017.

"If it's less than 40%, the Ministry of Commerce not will give permission. iPhone like it or not, you have to, if not, we don't allow it. This applies to all vendors." Rudiantara said.

Malaysian Content Provider Will Invest $10 Million

Content thrives mobile devices in Indonesia can not be separated from the size of ownership smartphone 4G is in the midst of Indonesian society. Franky added that there was an agreement by content provider champions in the neighboring country who would produce content mobile devices in Indonesia with funds worth $10 million. Able to earn around 3 Million Ringgit per day, the company will try its luck in expanding into Indonesia.

Now it is reported that his party is in talks to explore the next stage to process this synergistic cooperation.