Apple Purchases Land to Build AirTag Factory in Batam, Three More Vendors in Talks to Invest in Indonesia
Investment Minister and BKPM Head Rosan Roeslani has said that multinational technology company Apple Inc. has purchased land to build an AirTag factory in Batam, Riau Islands. He affirmed that Apple's investment in Indonesia continues in line with the US company's commitments, despite geopolitical tensions and trade wars.
"The investment continues even though there are geopolitical and economic tensions. But thankfully, it is proceeding in accordance with their commitments," Rosan said when met at his office on Tuesday (29/4).
Rosan claimed there would be additional investment by Apple. He said he had been in communication with three Apple product vendors, all of which are in the process of approaching investment in Indonesia, following the AirTag vendor.
"We have already spoken with three other Apple vendors about investing in Indonesia," he said.
However, Rosan did not elaborate further on the three vendors involved. He noted that the investment is particularly attractive because products required by Apple are also supplied by Zhejiang Huayou Cobalt Co, or Huayou. The Chinese company plans to add US$20 billion in investment, including the continuation of the electric vehicle ecosystem project abandoned by LG Energy Solution.
A single Apple mobile phone requires more than 340 products, such as the iPhone 16 series. "It turns out that much of their outsourcing comes from China. We have told them to invest in Indonesia. So Indonesia could also supply Apple with components, and these would be exempt from tariffs," Rosan said.
He noted that electronic products such as laptops and mobile phones are indeed exempt from tariffs. This tariff exemption presents an opportunity to further increase technology investment in Indonesia.
"So that investment in Indonesia can continue to grow, especially in the technology sector," he explained.
**Shifting Production Sites**
Apple is accelerating plans to move the majority of iPhone production for the US market from China to India, targeting the end of 2026. The move aims to anticipate the impact of import tariff impositions. The company sells more than 60 million iPhones annually in the United States, with approximately 80 per cent still produced in China.
US President Donald Trump has imposed 245 per cent import tariffs on goods from China, whilst Beijing has applied 125 per cent tariffs on US products.
Internal Apple sources have indicated the company is in urgent talks with two manufacturing partners, Foxconn and Tata Group, to accelerate the transition. According to Reuters, Apple and Foxconn have not provided official comment on the matter, whilst Tata declined to comment.
The Indian government under Prime Minister Narendra Modi has been actively promoting the country as a global smartphone manufacturing hub. However, higher import tariffs on components compared to other countries pose a particular challenge for manufacturers such as Apple.
"The cost of producing iPhones in India is 5 to 8 per cent higher than in China. The difference can reach 10 per cent in some cases," a source told Reuters on Friday (25/4).
"The investment continues even though there are geopolitical and economic tensions. But thankfully, it is proceeding in accordance with their commitments," Rosan said when met at his office on Tuesday (29/4).
Rosan claimed there would be additional investment by Apple. He said he had been in communication with three Apple product vendors, all of which are in the process of approaching investment in Indonesia, following the AirTag vendor.
"We have already spoken with three other Apple vendors about investing in Indonesia," he said.
However, Rosan did not elaborate further on the three vendors involved. He noted that the investment is particularly attractive because products required by Apple are also supplied by Zhejiang Huayou Cobalt Co, or Huayou. The Chinese company plans to add US$20 billion in investment, including the continuation of the electric vehicle ecosystem project abandoned by LG Energy Solution.
A single Apple mobile phone requires more than 340 products, such as the iPhone 16 series. "It turns out that much of their outsourcing comes from China. We have told them to invest in Indonesia. So Indonesia could also supply Apple with components, and these would be exempt from tariffs," Rosan said.
He noted that electronic products such as laptops and mobile phones are indeed exempt from tariffs. This tariff exemption presents an opportunity to further increase technology investment in Indonesia.
"So that investment in Indonesia can continue to grow, especially in the technology sector," he explained.
**Shifting Production Sites**
Apple is accelerating plans to move the majority of iPhone production for the US market from China to India, targeting the end of 2026. The move aims to anticipate the impact of import tariff impositions. The company sells more than 60 million iPhones annually in the United States, with approximately 80 per cent still produced in China.
US President Donald Trump has imposed 245 per cent import tariffs on goods from China, whilst Beijing has applied 125 per cent tariffs on US products.
Internal Apple sources have indicated the company is in urgent talks with two manufacturing partners, Foxconn and Tata Group, to accelerate the transition. According to Reuters, Apple and Foxconn have not provided official comment on the matter, whilst Tata declined to comment.
The Indian government under Prime Minister Narendra Modi has been actively promoting the country as a global smartphone manufacturing hub. However, higher import tariffs on components compared to other countries pose a particular challenge for manufacturers such as Apple.
"The cost of producing iPhones in India is 5 to 8 per cent higher than in China. The difference can reach 10 per cent in some cases," a source told Reuters on Friday (25/4).