Indonesian Political, Business & Finance News

Government Optimistic Apple Investment in Indonesia Will Proceed Despite New US Tariffs

| Source: GALERT
Jakarta - The Deputy for Investment Climate Development at the Ministry of Investment and Downstreaming/BKPM expressed optimism that Apple's investment in Indonesia will continue following the country's new tariff arrangement with the United States.

US President Donald Trump agreed to reduce import tariffs to 19 per cent from the previous 32 per cent for Indonesia. However, as a consequence, US products entering Indonesia will not be subject to any tariffs.

"We are optimistic that the planned investment will proceed, especially as the Minister (Rosan Roeslani) has stated on various occasions that Apple has plans to invest in Batam. We believe it will continue. Most likely it will go ahead," he said when met at the Ministry of SMEs office in Jakarta on Friday (18/7/2025).

However, when asked to confirm progress on the investment plan, Riyatno did not provide details. Apple has reportedly already purchased land for the construction of an AirTag factory in Batam.

Apple is prepared to invest in Indonesia by building an AirTag factory in Batam valued at US$1 billion or Rp 16 trillion. The factory is planned to begin operations in February 2026.

This was announced by Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani at the Spirit of Early 2025 event. Apple has already purchased land to build the factory.

"On the investment side, we have successfully convinced them (Apple) to remain in Batam. The land has been purchased, they have shown it to us, and they have carried out cut and fill work to begin construction. It is expected that by early 2026, in February, it will be ready for AirTag production," said Rosan at Menara Global, South Jakarta, on Wednesday (15/1/2025).
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