Apple's Batam AirTag Factory Plan to Continue Despite Reciprocal Tariffs
Jakarta (ANTARA) - The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has stated that plans by US technology giant Apple to build an AirTag factory in Batam will continue despite the imposition of reciprocal tariffs.
"God willing, it will continue," said Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM Nurul Ichwan when met in Jakarta on Wednesday.
He said the company has already purchased land for the factory site in Batam, and during their most recent meeting expressed its seriousness about investing in Indonesia.
"The certainty is that if they have already purchased the land, there is no way they will not invest," he said.
Nevertheless, he assumed that the reciprocal tariff policy would globally 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 think that their market is not just in America but also elsewhere, and if building a factory in America makes them uncompetitive in other places, then they cannot achieve their global value as leaders of that product," he said.
Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia and the United States have agreed to complete reciprocal import tariff negotiations within 60 days.
"Indonesia and the United States have agreed to complete these negotiations within 60 days," Airlangga said at a press conference entitled "Latest Developments in Indonesia-United States Trade Negotiations and Diplomacy" in Washington DC, monitored online from Jakarta on Friday (18/4).
During the negotiations, a terms of reference and scope of discussion were also agreed upon, covering trade and investment partnerships, critical minerals partnerships, and partnerships related to supply chain reliability and resilience.
The outcomes of the meeting, Airlangga said, would be followed up with one to three rounds of further meetings.
"We hope that within 60 days, this framework can be followed up in the form of an agreement format to be approved between Indonesia and the United States," Airlangga said.
"God willing, it will continue," said Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM Nurul Ichwan when met in Jakarta on Wednesday.
He said the company has already purchased land for the factory site in Batam, and during their most recent meeting expressed its seriousness about investing in Indonesia.
"The certainty is that if they have already purchased the land, there is no way they will not invest," he said.
Nevertheless, he assumed that the reciprocal tariff policy would globally 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 think that their market is not just in America but also elsewhere, and if building a factory in America makes them uncompetitive in other places, then they cannot achieve their global value as leaders of that product," he said.
Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia and the United States have agreed to complete reciprocal import tariff negotiations within 60 days.
"Indonesia and the United States have agreed to complete these negotiations within 60 days," Airlangga said at a press conference entitled "Latest Developments in Indonesia-United States Trade Negotiations and Diplomacy" in Washington DC, monitored online from Jakarta on Friday (18/4).
During the negotiations, a terms of reference and scope of discussion were also agreed upon, covering trade and investment partnerships, critical minerals partnerships, and partnerships related to supply chain reliability and resilience.
The outcomes of the meeting, Airlangga said, would be followed up with one to three rounds of further meetings.
"We hope that within 60 days, this framework can be followed up in the form of an agreement format to be approved between Indonesia and the United States," Airlangga said.