Apple's AirTag Factory Plan in Batam to Continue Despite Reciprocal Tariffs
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has stated that US technology giant Apple's plan to build an AirTag factory in Batam will continue despite the impending reciprocal tariffs.
"God willing, it will continue," said Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, in Jakarta on Wednesday.
He explained that the company has already purchased land for the factory site in Batam, and expressed its commitment to investing in Indonesia during their most recent meeting.
"The fact that they have already purchased land means they will certainly invest," he said.
Nevertheless, he assumed that globally, the reciprocal tariff policy would affect the performance of US companies, meaning that to enhance competitiveness, these companies would need to strengthen their markets and production in other countries.
"If they consider that their market is not only in America but also elsewhere, and if building a factory in America would make them uncompetitive in other markets, then they cannot achieve their global value as leaders of their product," he said.
"God willing, it will continue," said Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, in Jakarta on Wednesday.
He explained that the company has already purchased land for the factory site in Batam, and expressed its commitment to investing in Indonesia during their most recent meeting.
"The fact that they have already purchased land means they will certainly invest," he said.
Nevertheless, he assumed that globally, the reciprocal tariff policy would affect the performance of US companies, meaning that to enhance competitiveness, these companies would need to strengthen their markets and production in other countries.
"If they consider that their market is not only in America but also elsewhere, and if building a factory in America would make them uncompetitive in other markets, then they cannot achieve their global value as leaders of their product," he said.