Apple's AirTag Investment Has Limited Impact on Indonesia's Telecommunications Industry, Expert Says
Executive Director of the Information and Communication Technology (ICT) Institute Heru Sutadi has assessed that Apple Inc.'s investment in AirTag production does not deliver a significant impact on Indonesia's telecommunications industry. According to him, Apple's tracking device has yet to command substantial appeal in the domestic market.
"The AirTag market is not large and has not contributed to the advancement of the telecommunications industry," Heru said when contacted by Tempo on Saturday, 3 May 2025.
Apple is currently constructing a factory in Batam City to manufacture AirTags, with an investment value reaching Rp 16 trillion or approximately US$1 billion. However, according to Heru, the factory's presence will not affect product prices in Indonesia, given that Apple is a global company with uniform pricing policies across various countries.
Heru added that if Apple were to invest in manufacturing iPhones in Indonesia, the impact would be far more significant for the national telecommunications industry. "The iPhone market in Indonesia is quite large, particularly in the high-end segment," he said. This, in his view, would do more to drive growth in the telecommunications sector.
Investment Minister and Head of the Investment Coordinating Board (BKPM) Rosan Roeslani stated that Apple has committed to building an AirTag factory in Batam. The factory is scheduled to begin operations in 2026.
"It is expected that 65 per cent of global AirTag demand can eventually be met by the factory built in Batam," Rosan said.
Rosan had also met with several senior Apple executives, including Apple Vice President of Global Policy Nick Ammann and Apple Southeast Asia Head of Corporate Communications and Public Relations Brett Galvin. The meeting lasted nearly one hour, from 18.00 to 18.50 Western Indonesian Time (WIB), on Tuesday, 7 January 2025.
"The AirTag market is not large and has not contributed to the advancement of the telecommunications industry," Heru said when contacted by Tempo on Saturday, 3 May 2025.
Apple is currently constructing a factory in Batam City to manufacture AirTags, with an investment value reaching Rp 16 trillion or approximately US$1 billion. However, according to Heru, the factory's presence will not affect product prices in Indonesia, given that Apple is a global company with uniform pricing policies across various countries.
Heru added that if Apple were to invest in manufacturing iPhones in Indonesia, the impact would be far more significant for the national telecommunications industry. "The iPhone market in Indonesia is quite large, particularly in the high-end segment," he said. This, in his view, would do more to drive growth in the telecommunications sector.
Investment Minister and Head of the Investment Coordinating Board (BKPM) Rosan Roeslani stated that Apple has committed to building an AirTag factory in Batam. The factory is scheduled to begin operations in 2026.
"It is expected that 65 per cent of global AirTag demand can eventually be met by the factory built in Batam," Rosan said.
Rosan had also met with several senior Apple executives, including Apple Vice President of Global Policy Nick Ammann and Apple Southeast Asia Head of Corporate Communications and Public Relations Brett Galvin. The meeting lasted nearly one hour, from 18.00 to 18.50 Western Indonesian Time (WIB), on Tuesday, 7 January 2025.