Apple's AirTag Factory Project in Batam to Proceed Despite US Reciprocal Tariff Threat
The Ministry of Investment/BKPM has confirmed that Apple's AirTag factory construction project in Batam will proceed as planned, despite the potential imposition of reciprocal tariffs by the United States on Indonesia.
BKPM Deputy for Investment Promotion Nurul Ichwan affirmed that Apple has purchased land for the factory construction as a concrete demonstration of their investment commitment in Indonesia.
"If they have already purchased the land, there is no way they would not invest," he said regarding Apple's investment in Indonesia.
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Indonesia and the United States are working to complete negotiations on reciprocal import tariffs within a 60-day timeframe.
At a press conference held in Washington DC on 18 April, Airlangga explained that both countries had agreed on a framework and scope of discussions, including trade and investment sectors, strategic minerals, and supply chain resilience. He expressed hope that the outcomes of subsequent meetings could be formalised in an official agreement between the two nations.
Nurul emphasised that whilst reciprocal tariff policies could globally affect the performance of US companies, Apple's move to expand production overseas represents an important strategy for maintaining competitiveness and supply chain sustainability in international markets.
"If their market extends beyond America, and building factories in the US makes production costs uncompetitive in other countries, then the value of their global production network could be disrupted," he explained regarding Apple's investment in Indonesia.
BKPM Deputy for Investment Promotion Nurul Ichwan affirmed that Apple has purchased land for the factory construction as a concrete demonstration of their investment commitment in Indonesia.
"If they have already purchased the land, there is no way they would not invest," he said regarding Apple's investment in Indonesia.
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Indonesia and the United States are working to complete negotiations on reciprocal import tariffs within a 60-day timeframe.
At a press conference held in Washington DC on 18 April, Airlangga explained that both countries had agreed on a framework and scope of discussions, including trade and investment sectors, strategic minerals, and supply chain resilience. He expressed hope that the outcomes of subsequent meetings could be formalised in an official agreement between the two nations.
Nurul emphasised that whilst reciprocal tariff policies could globally affect the performance of US companies, Apple's move to expand production overseas represents an important strategy for maintaining competitiveness and supply chain sustainability in international markets.
"If their market extends beyond America, and building factories in the US makes production costs uncompetitive in other countries, then the value of their global production network could be disrupted," he explained regarding Apple's investment in Indonesia.