Apple's Batam AirTag Factory to Proceed Despite Trump's Import Tariff Threats
Jakarta (ANTARA) - The Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) has confirmed that Apple's AirTag factory in Batam will proceed with construction despite import tariffs expected to be imposed by United States President Donald Trump.
Deputy for Investment Promotion at the Ministry of Investment and Downstream Industries/BKPM, Nurul Ichwan, speaking in Jakarta on Tuesday, stated that the AirTag products manufactured in Batam are not targeted at the US market.
"The target market, in my view, is not the United States. If you manufacture in Indonesia and then ship to America, the logistics costs are expensive," he said.
He expressed confidence that whilst the potential for domestically produced AirTags in the US market may be small, export potential to countries other than the United States remains substantial.
"I believe the market outside America is still very large and can be supplied with products from Batam," he added.
Furthermore, Nurul Ichwan noted that the company has already purchased land in Batam which will serve as the location for its manufacturing plant. A senior Apple executive has also expressed a strong commitment to building the factory in Indonesia.
"One of its board directors has already met with Minister Rosan, and he guaranteed that the AirTag facility will definitely be built in Indonesia," he said.
Minister of Investment and Downstream Industries/Head of BKPM Rosan Roeslani stated that the Apple vendor's factory has already begun construction in Batam, where the vendor will supply 65 per cent of global AirTag demand.
According to him, the investment is valued at US$1 billion, equivalent to approximately Rp16 trillion, with the potential to create up to 2,000 jobs. The investment will continue to be encouraged until it reaches US$10 billion. The vendor's factory is targeted for completion in early 2026.
US President Donald Trump has issued stern threats to Apple, demanding the technology company move iPhone production to the United States or face import tariffs of 25 per cent.
According to TechCrunch, the statement came just days after Apple's primary manufacturing partner, Foxconn, announced a US$1.5 billion investment to expand its operations in India. Apple has been working to shift part of its hardware production to India amid uncertainty in US-China trade relations during the Trump presidency.
During an earnings report conference earlier this month, Apple CEO Tim Cook stated that the majority of iPhones sold in the United States going forward would originate from India.
Deputy for Investment Promotion at the Ministry of Investment and Downstream Industries/BKPM, Nurul Ichwan, speaking in Jakarta on Tuesday, stated that the AirTag products manufactured in Batam are not targeted at the US market.
"The target market, in my view, is not the United States. If you manufacture in Indonesia and then ship to America, the logistics costs are expensive," he said.
He expressed confidence that whilst the potential for domestically produced AirTags in the US market may be small, export potential to countries other than the United States remains substantial.
"I believe the market outside America is still very large and can be supplied with products from Batam," he added.
Furthermore, Nurul Ichwan noted that the company has already purchased land in Batam which will serve as the location for its manufacturing plant. A senior Apple executive has also expressed a strong commitment to building the factory in Indonesia.
"One of its board directors has already met with Minister Rosan, and he guaranteed that the AirTag facility will definitely be built in Indonesia," he said.
Minister of Investment and Downstream Industries/Head of BKPM Rosan Roeslani stated that the Apple vendor's factory has already begun construction in Batam, where the vendor will supply 65 per cent of global AirTag demand.
According to him, the investment is valued at US$1 billion, equivalent to approximately Rp16 trillion, with the potential to create up to 2,000 jobs. The investment will continue to be encouraged until it reaches US$10 billion. The vendor's factory is targeted for completion in early 2026.
US President Donald Trump has issued stern threats to Apple, demanding the technology company move iPhone production to the United States or face import tariffs of 25 per cent.
According to TechCrunch, the statement came just days after Apple's primary manufacturing partner, Foxconn, announced a US$1.5 billion investment to expand its operations in India. Apple has been working to shift part of its hardware production to India amid uncertainty in US-China trade relations during the Trump presidency.
During an earnings report conference earlier this month, Apple CEO Tim Cook stated that the majority of iPhones sold in the United States going forward would originate from India.