Apple Confirmed to Proceed with AirTag Factory in Batam Despite US Reciprocal Tariff Plans
Apple is confirmed to be pressing ahead with plans to build an AirTag factory in Batam despite the United States' plans to impose reciprocal tariffs on Indonesia. The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has stated that Apple's commitment to investing in Indonesia remains strong.
"God willing, it will continue," said Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, when met in Jakarta on Wednesday (24/4).
According to Nurul, Apple has already purchased land for the factory site in Batam, demonstrating the US technology company's seriousness. "If they have already purchased land, there is no way they will not invest," he said.
Nevertheless, Nurul acknowledged that reciprocal tariff policies could globally impact the performance of US companies. He explained that to remain competitive, global companies such as Apple need to strengthen their markets and production across various countries, including Indonesia.
"If they consider that their market is not only in the US but also elsewhere, and if building a factory in the US makes them uncompetitive in other markets, then they cannot achieve global value as leaders of that product," he said.
Tariff Negotiations with the US
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that Indonesia and the US have agreed to complete reciprocal tariff negotiations within 60 days.
"Indonesia and the US have agreed to conclude these negotiations within 60 days," Airlangga said at a press conference on "Latest Developments in Indonesia-United States Trade Negotiations and Diplomacy" in Washington DC on Friday (18/4).
According to Airlangga, both countries have agreed on terms of reference for negotiations covering trade and investment partnerships, critical minerals, and supply chain resilience.
"We hope that within 60 days, this framework can be followed up in the form of an agreement format to be approved by Indonesia and the US," he said.
"God willing, it will continue," said Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, when met in Jakarta on Wednesday (24/4).
According to Nurul, Apple has already purchased land for the factory site in Batam, demonstrating the US technology company's seriousness. "If they have already purchased land, there is no way they will not invest," he said.
Nevertheless, Nurul acknowledged that reciprocal tariff policies could globally impact the performance of US companies. He explained that to remain competitive, global companies such as Apple need to strengthen their markets and production across various countries, including Indonesia.
"If they consider that their market is not only in the US but also elsewhere, and if building a factory in the US makes them uncompetitive in other markets, then they cannot achieve global value as leaders of that product," he said.
Tariff Negotiations with the US
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that Indonesia and the US have agreed to complete reciprocal tariff negotiations within 60 days.
"Indonesia and the US have agreed to conclude these negotiations within 60 days," Airlangga said at a press conference on "Latest Developments in Indonesia-United States Trade Negotiations and Diplomacy" in Washington DC on Friday (18/4).
According to Airlangga, both countries have agreed on terms of reference for negotiations covering trade and investment partnerships, critical minerals, and supply chain resilience.
"We hope that within 60 days, this framework can be followed up in the form of an agreement format to be approved by Indonesia and the US," he said.