Apple's Batam AirTag Factory Investment to Proceed Despite US Tariff War
Jakarta, CNBC Indonesia - The Ministry of Investment and Downstream Industries, also known as the Investment Coordinating Board (BKPM), has revealed that Apple's domestic investment to build an AirTag factory will continue despite the ongoing United States tariff war.
Deputy for Promotion at the Ministry of Investment and Downstream Industries/BKPM, Nurul Ichwan, disclosed that Apple has already purchased land in Batam for the construction of an AirTag factory.
"My assumption is that it will likely have an impact [regarding US tariffs]. However, knowing that this is also an American company, they certainly won't remain idle on this matter. If American companies are competing in markets outside the US, they may not have the ability to influence their own government," he said when met at the Ministry of Investment and Downstream Industries/BKPM office on Wednesday (23/4/2025).
He explained that Apple's market extends well beyond the US, with many countries serving as trade destinations for the company.
Unfortunately, Nurul could not yet confirm when the Apple factory in Indonesia would begin construction. However, he affirmed that Apple has already procured land for the AirTag factory development.
"They will build there, and certainly if they have already purchased the land, there is no way they won't invest," he stressed.
It should be noted that during a previous meeting between Minister of Investment and Downstream Industries/Head of BKPM Rosan Roeslani and Apple representatives, he revealed that Apple was fully committed to the first phase of the AirTag facility worth US$1 million.
"This is just the first stage. I am confident it will grow. I am certain that vendors will increase," said Rosan when met in Jakarta on Tuesday (11/2/2025).
He also noted that Apple's vendors in Indonesia are still far behind Vietnam, which is why he is confident there will be further development going forward.
"Especially since we currently have just one, compared to Vietnam which already has 34," he said.
Deputy for Promotion at the Ministry of Investment and Downstream Industries/BKPM, Nurul Ichwan, disclosed that Apple has already purchased land in Batam for the construction of an AirTag factory.
"My assumption is that it will likely have an impact [regarding US tariffs]. However, knowing that this is also an American company, they certainly won't remain idle on this matter. If American companies are competing in markets outside the US, they may not have the ability to influence their own government," he said when met at the Ministry of Investment and Downstream Industries/BKPM office on Wednesday (23/4/2025).
He explained that Apple's market extends well beyond the US, with many countries serving as trade destinations for the company.
Unfortunately, Nurul could not yet confirm when the Apple factory in Indonesia would begin construction. However, he affirmed that Apple has already procured land for the AirTag factory development.
"They will build there, and certainly if they have already purchased the land, there is no way they won't invest," he stressed.
It should be noted that during a previous meeting between Minister of Investment and Downstream Industries/Head of BKPM Rosan Roeslani and Apple representatives, he revealed that Apple was fully committed to the first phase of the AirTag facility worth US$1 million.
"This is just the first stage. I am confident it will grow. I am certain that vendors will increase," said Rosan when met in Jakarta on Tuesday (11/2/2025).
He also noted that Apple's vendors in Indonesia are still far behind Vietnam, which is why he is confident there will be further development going forward.
"Especially since we currently have just one, compared to Vietnam which already has 34," he said.