President Admits Indonesia Still Disadvantaged in ASEAN for Apple's Global Supply Chain Affairs

Name: President Admits Indonesia Still Disadvantaged in ASEAN for Apple's Global Supply Chain Affairs
Uploaded: 2024-05-07T07:46:23Z
Duration: 20 min 32 s
Description: The international standard device testing facility, IDTH, is the largest in Southeast Asia, just needs to boost its local products.

The international standard device testing facility, IDTH, is the largest in Southeast Asia, just needs to boost its local products.

This article has been translated using AI. See Original .

MAWAR KUSUMA WULAN

· 6 minutes read

JAKARTA, KOMPAS — President Joko Widodo admitted that imported products still dominate applications for device testing in Indonesia. From the data he obtained, President Jokowi showed that there were requests for testing 3,046 devices from China, while requests for testing devices from Indonesia were only 632 devices.

The President also highlighted the low participation of local suppliers in the global supply chain. President Jokowi then gave the example that of Apple's 320 global suppliers, there are only two suppliers from Indonesia. This is far in comparison with other ASEAN countries, such as the Philippines, Malaysia, Thailand and Vietnam.

The number of suppliers from the Philippines to Apple reaches 17 companies, 19 suppliers from Malaysia, 24 suppliers from Thailand, and 72 suppliers from Vietnam. However, Indonesia's gross domestic product (GDP) is the largest or 46 percent of ASEAN's GDP.

Also read: Indonesia Needs to Learn from Vietnam to Enter Apple's Supply Chain

"Why are we silent? Why are all of you, mothers and fathers, silent, shocked, and concerned? But this is a great task that we must pursue. Other countries can get dozens, we only get two. Therefore, we must improve the abilities of our local technology industry," said President Joko Widodo when inaugurating the Indonesia Digital Test House or IDTH at the Telecommunications Device Testing Center in Depok, Bogor, West Java, on Tuesday (7/5/2024).

"Why are we silent? Why are all of you, mothers and fathers, silent, shocked, saddened? But this is the great work that we must pursue. Other countries can get dozens, we can only get two. Therefore, we must improve the capabilities of our local technology industries."

Therefore, the President emphasized the importance of Indonesia's transformation from being a consumer to a producer in the global technology industry. "We do not want to be their market. We want to be a key player in the global technology supply chain and of course, this requires courage and breakthroughs that we must undertake," he said.

Increase capacity

Furthermore, according to President Jokowi, with the inauguration of IDTH, Indonesia is expected not only to be a spectator, but also to increase the capacity of local component products in submitting device testing requests at IDTH.

So far, imported products still dominate the application for device testing in Indonesia. In his speech, President Jokowi expressed his concern about the domination of imports in the use of technology devices in Indonesia, with import values exceeding Rp 30 trillion.

"However, unfortunately, the technology devices and communication tools that we use are still dominated by imported goods and the trade deficit in this sector is almost 2.1 billion US dollars, equivalent to more than 30 trillion Indonesian rupiah," said President Jokowi.

"Unfortunately, the technology and communication devices that we use are still dominated by imported products, and the trade deficit in this sector is almost 2.1 billion US dollars, equivalent to more than Rp 30 trillion."

The President then invited all parties to develop caution regarding the production of digital devices which is growing very rapidly. "We must not just be spectators, we must not just be markets, and we must be players, producers," said President Jokowi.

Accompanying President Jokowi at the inauguration event were Coordinating Minister for Political, Legal, and Security Affairs Hadi Tjahjanto, Minister of Communication and Information Technology Budi Arie Setiadi, Presidential Chief of Staff Moeldoko, Deputy Minister of Communication and Information Technology Nezar Patria, Acting Governor of West Java Bey Machmudin, and Mayor of Depok Mohammad Idris.

Currently, imported products still dominate the requests for device testing. Data obtained by the President shows that there were requests for testing 3,046 devices from China, while requests for device testing from Indonesia were only 632 devices. "It's very far behind," said the President.

Furthermore, the President highlighted the low participation of local suppliers in the global supply chain. The President then gave the example that of Apple's 320 global suppliers, there are only two suppliers from Indonesia. This is far in comparison with other ASEAN countries, such as the Philippines, Malaysia, Thailand and Vietnam.

"Why are we silent? Why are all of you, fathers and mothers, silent, shocked, and concerned? But this is the big task that we must pursue. Other countries can get dozens, we only get two. Therefore, we must improve the ability of our local technology industry."

"Why are we silent? Why are all the fathers and mothers silent, stunned, and concerned? But this is the great work that we must pursue. Other countries can get dozens, while we can only get two. Therefore, we must improve the capabilities of our local technology industry," said President Jokowi.

The President highlighted the importance of Indonesia's transformation from a consumer to a producer in the global technology industry. "We do not want to be just their market. We want to be a key player in the global technology supply chain and of course, this requires courage, as well as breakthroughs that we must make," he said.

The inauguration of IDTH is expected to be a significant step in the national effort to enhance local capacity in technology development. As an international-standard device testing facility, IDTH is the largest and most comprehensive in Southeast Asia. IDTH will also become the leading digital device certification center in the region.

"All digital devices are tested in this place. Before being marketed, they are tested here to ensure that the standards of safety, health, and the safety of users in the community using these digital devices are met."

With an investment of IDR 980 billion or close to IDR 1 trillion, this facility is equipped with sophisticated equipment to test various digital devices, ranging from laptops, handy talkies, to radar. ”All digital devices are tested here. "Before being marketed, they are tested here to ensure that the security, health and safety standards of the people who use these digital devices are met," said the President.

More than just a certification testing center, the President hopes that IDTH will become a center for innovation and research. The President instructed the Ministry of Communications and Information Technology to collaborate with universities, startup companies, and SMEs in promoting research and patents, as well as supporting the development and certification of local products.

"Digitization has become the basis for the development of domestic industries and economy by placing local producers as the king in their own country," said President Jokowi.

”This is a profitable unit. The construction is almost IDR 1 trillion, but the revenue, PNBP, is fast, almost IDR 200 billion per year. ”

In his remarks, Minister of Communication and Information Budi Arie added, IDTH is capable of becoming the largest and most comprehensive digital device testing center in Southeast Asia. IDTH has been equipped with various advanced, international-class facilities to test digital device features, such as telecommunications features, radio frequency, and specific absorption rate (SAR).

According to Budi Arie, this testing facility serves to ensure the safety and security of device users, standardize export or import products, and ensure interoperability and protection against interference between devices. This inauguration also marks the addition of IDTH's capacity.

Also read: Palapa Satellite Day and the Challenge of Self-Sufficiency in Communication Technology

In 2023, there will be 644 features tested in this facility. As equipment is added and technology is developed, testing capacity in 2024 is projected to increase to 1,600 features. By 2025-2026, IDTH is estimated to be able to serve testing of up to 5,000 features per year.

”This is a profitable unit. "The construction is almost IDR 1 trillion, but the revenue, PNBP, is fast, almost IDR 200 billion per year," said Budi Arie.

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President Admits Indonesia Still Disadvantaged in ASEAN for Apple's Global Supply Chain Affairs

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Increase capacity