The Minister of Industry of Airlangga Hartarto (left) and the Minister of Communications and Informatics Rudiantara (second left) listened to an explanation from Apple Developer Academy Director Gordon Shukwit (right) regarding the facilities provided to app developers PT Apple Indonesia at the iOS Developer Academy Facilities Inauguration event in Tangerang, May 7, 2018. (Credit: Ministry of Industry).

JAKARTA (TheInsiderStories)PT Apple Indonesia, the local unit of electronics giant Apple, today launched a research centre in Tangerang, Banten, called Apple Innovation Center which aims to train 200 application developers every year.

The 1,500 square-meters research center is the first incubator facility for the Apple’s app development in Asia and third in the world after Brazil and Italy. In the early stage, the research center will receive 75 students under cooperation with Bina Nusantara University.

After its full operation scheduled in June, the facility will accept enrollment from the general public. The Apple academy will ensure students will get patent rights for their works.

The company has allocated $44 million for the Tangerang’s facility as well as two more similar facilities that will be built in Java and outside Java.

Industry Minister Airlangga Hartarto on Monday (7/5) in a press release said the research center will bring benefits for Indonesia to embark on fourth industrial revolution (Industry 4.0), considering Indonesia’s spending on research and development only accounts for 0.1 per cent to 0.3 per cent of GDP.

Meanwhile, Communications and Information Minister Rudiantara emphasized the Apple Academy will not threaten the local developers as it uses the iOS system. Apple will bring programming scientists from around the world to teach in the research center. The course includes Objective-C and Swift, a programming language from Apple that was created to create applications for iOS, Apple TV, and Apple Watch.

The iOS developer community in Indonesia has grown by more than 50 percent over the past two years. Apple data shows, by 2017, iOS developers worldwide generate revenues of $26.5 billion.

LOCAL COMPONENT

Apple Indonesia builds the research center in Indonesia in order to meet the 30 per cent local content requirement for the mobile phone companies according to the Minister Regulation No. 29/2017 on the local contents.

A country with huge population and burgeoning middle-class, Indonesia is seen as a lucrative market for smartphone makers like Apple. Therefore, Ministry of Industry issued the Minister Regulation No. 29/2017 on local content to ensure that Indonesia’s market potential translates to value-addition.

The government expected to increase the competitiveness of local products in order to compete with imported goods. Currently, around 30 mobile phone companies have fulfilled 30 per cent of local content.

According to the ministry of industry data, Indonesia’s imported mobile phones decreased significantly over the last five years as domestic production increased.

In 2013, Indonesia imported 62 million units equivalent to $3 billion, while the domestic products only reached 105 thousand for two local brands.

After the government started the local content requirement in 2014, the mobile phone imports decreased to 60 million units, while domestic mobile phone production grew significantly to 5.7 million units.

In 2017, mobile phone imports dropped to 11.4 million units, while local mobile phone production reached 60.5 million units for 34 brands which eleven of them are local brands.

Email: fauzulmuna@theinsiderstories.com

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