BKPM Assures US Investment in Indonesia Will Continue Despite Tariff-Free Access for American Products
JAKARTA — Deputy for Investment Climate Development at the Ministry of Investment and Downstreaming/BKPM, Riyatno, has confirmed that United States investment in Indonesia will continue despite the Trump-led country receiving tariff-free access for its products entering the domestic market.
"Yes, US company investments in Indonesia will continue," Riyatno stated firmly, as quoted by Antara on Friday (18/7).
He revealed that one US investment proceeding as planned is the construction of an AirTag production facility by American tech giant Apple in Batam. Apple had previously announced plans to build a factory in Batam to manufacture AirTags, with an investment value reaching US$1 billion or more than Rp16 trillion. Scheduled to commence operations in 2026, the production facility is expected to meet 65 per cent of global AirTag demand.
"We are optimistic that planned investments will proceed. Minister Rosan Roeslani has mentioned on several occasions that Apple has already purchased land for its investment plans in Batam, and we believe this will continue," he added.
Concerns over the continuation of US investment in Indonesia emerged after Donald Trump announced tariff and non-tariff-free access for American products entering the Indonesian market, whilst Indonesia faces a 19 per cent tariff. In an interview at the White House, Trump described the trade deal signed by the Indonesian government as the largest in history.
"This important deal opens the ENTIRE Indonesian market to the United States for the first time in history," Trump said on Wednesday (16/7).
Meanwhile, Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu indicated that investment realisation in the second quarter of 2025 is estimated to have reached Rp475 trillion, higher than the first quarter's Rp465 trillion.
Although complete data on the countries of origin for foreign direct investment (FDI) contributing most to domestic investment in the second quarter is not yet available, first-quarter figures show that the US has not yet entered the top five largest FDI source countries in Indonesia. In the first quarter of 2025, US companies ranked only sixth with total investment of US$802.16 million across 2,652 projects.
Reflecting on this data, Riyatno reiterated that BKPM is tasked with attracting and stimulating investment interest in Indonesia not only from the US but also from other countries.
"We continue to strive to attract investment from various countries," Riyatno affirmed.
"Yes, US company investments in Indonesia will continue," Riyatno stated firmly, as quoted by Antara on Friday (18/7).
He revealed that one US investment proceeding as planned is the construction of an AirTag production facility by American tech giant Apple in Batam. Apple had previously announced plans to build a factory in Batam to manufacture AirTags, with an investment value reaching US$1 billion or more than Rp16 trillion. Scheduled to commence operations in 2026, the production facility is expected to meet 65 per cent of global AirTag demand.
"We are optimistic that planned investments will proceed. Minister Rosan Roeslani has mentioned on several occasions that Apple has already purchased land for its investment plans in Batam, and we believe this will continue," he added.
Concerns over the continuation of US investment in Indonesia emerged after Donald Trump announced tariff and non-tariff-free access for American products entering the Indonesian market, whilst Indonesia faces a 19 per cent tariff. In an interview at the White House, Trump described the trade deal signed by the Indonesian government as the largest in history.
"This important deal opens the ENTIRE Indonesian market to the United States for the first time in history," Trump said on Wednesday (16/7).
Meanwhile, Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu indicated that investment realisation in the second quarter of 2025 is estimated to have reached Rp475 trillion, higher than the first quarter's Rp465 trillion.
Although complete data on the countries of origin for foreign direct investment (FDI) contributing most to domestic investment in the second quarter is not yet available, first-quarter figures show that the US has not yet entered the top five largest FDI source countries in Indonesia. In the first quarter of 2025, US companies ranked only sixth with total investment of US$802.16 million across 2,652 projects.
Reflecting on this data, Riyatno reiterated that BKPM is tasked with attracting and stimulating investment interest in Indonesia not only from the US but also from other countries.
"We continue to strive to attract investment from various countries," Riyatno affirmed.