Apple to Proceed with Indonesian Investment Despite US Import Tariffs
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has confirmed that technology giant Apple Inc will continue to invest in Indonesia following US President Donald Trump's imposition of a 19% import tariff on Indonesia.
Apple has committed to investing US$150 million, equivalent to Rp2.44 trillion (at an assumed exchange rate of Rp16,287 per US dollar), for the construction of an AirTag factory in Batam. The substantial investment is intended to fulfil local content requirement (TKDN) obligations. Apple will bring in global value chain (GVC) company ICT Luxshare to manufacture AirTags, which will supply 65% of global AirTag demand.
Deputy for Investment Climate Development at the Ministry of Investment and Downstreaming/BKPM, Riyatno, stated that Apple's investment would continue, noting that the tech giant has already purchased land for the AirTag factory in Batam.
"We are optimistic that the planned investment will proceed. The Minister [BKPM Minister Rosan Perkasa Roeslani] has stated on several occasions that Apple has already purchased land for its investment plans in Batam, and in our view this will continue," said Riyatno when met at the Ministry of SMEs office in Jakarta on Friday (18/7/2025).
He added that Apple would maintain its investment in Indonesia following the announcement of the 19% US import tariff on Indonesian goods. "In our view, Apple's investment in Indonesia will continue. It is most likely to proceed," he explained.
However, Riyatno declined to disclose the progress of Apple's investment realisation to date, stating that updates would be provided by Minister of Investment and Downstreaming/Head of BKPM Rosan Perkasa Roeslani. Nevertheless, he assured that the US import tariffs would not disrupt American investment in Indonesia.
"This means we will continue our efforts to attract investment from various countries," he said.
The Ministry of Industry had previously revealed that Apple Inc also committed to sourcing AirTag battery components from domestic manufacturers. Additionally, the tech giant is preparing a production line at Long Harmony in Bandung to manufacture mesh fabric for AirPods Max, making Long Harmony part of Apple's GVC.
Furthermore, Apple will bring in US$160 million in hard cash to fulfil its TKDN obligations under scheme 3, or innovation investment. These efforts by Apple to obtain TKDN certification ultimately bore fruit, enabling the iPhone manufacturer to bring its latest flagship series, the iPhone 16, for official sale in Indonesia.
Apple has committed to investing US$150 million, equivalent to Rp2.44 trillion (at an assumed exchange rate of Rp16,287 per US dollar), for the construction of an AirTag factory in Batam. The substantial investment is intended to fulfil local content requirement (TKDN) obligations. Apple will bring in global value chain (GVC) company ICT Luxshare to manufacture AirTags, which will supply 65% of global AirTag demand.
Deputy for Investment Climate Development at the Ministry of Investment and Downstreaming/BKPM, Riyatno, stated that Apple's investment would continue, noting that the tech giant has already purchased land for the AirTag factory in Batam.
"We are optimistic that the planned investment will proceed. The Minister [BKPM Minister Rosan Perkasa Roeslani] has stated on several occasions that Apple has already purchased land for its investment plans in Batam, and in our view this will continue," said Riyatno when met at the Ministry of SMEs office in Jakarta on Friday (18/7/2025).
He added that Apple would maintain its investment in Indonesia following the announcement of the 19% US import tariff on Indonesian goods. "In our view, Apple's investment in Indonesia will continue. It is most likely to proceed," he explained.
However, Riyatno declined to disclose the progress of Apple's investment realisation to date, stating that updates would be provided by Minister of Investment and Downstreaming/Head of BKPM Rosan Perkasa Roeslani. Nevertheless, he assured that the US import tariffs would not disrupt American investment in Indonesia.
"This means we will continue our efforts to attract investment from various countries," he said.
The Ministry of Industry had previously revealed that Apple Inc also committed to sourcing AirTag battery components from domestic manufacturers. Additionally, the tech giant is preparing a production line at Long Harmony in Bandung to manufacture mesh fabric for AirPods Max, making Long Harmony part of Apple's GVC.
Furthermore, Apple will bring in US$160 million in hard cash to fulfil its TKDN obligations under scheme 3, or innovation investment. These efforts by Apple to obtain TKDN certification ultimately bore fruit, enabling the iPhone manufacturer to bring its latest flagship series, the iPhone 16, for official sale in Indonesia.