Investment Ministry Reveals Progress on Apple's AirTag Factory Construction in Batam
JAKARTA. The Investment Ministry/BKPM has revealed the progress of Apple's investment in constructing an AirTag factory in Batam, belonging to the American technology giant.
Deputy for Investment Promotion at the Investment Ministry/BKPM, Nurul Ikhwan, said Apple is serious about building the factory. He noted that the company founded by Steve Jobs and Steve Wozniak has already purchased land in Batam.
"At the latest meeting with the Minister, they confirmed that land acquisition had been completed and they would build there. So certainly, if they have already purchased the land, there is no way they would not invest," said Nurul when met at the Investment Ministry office in Jakarta on Wednesday (23/4).
With the 32% reciprocal tariff imposed by the United States on Indonesia, Nurul noted this could potentially affect Apple's investment plans in Indonesia. Nevertheless, he expressed confidence that President Donald Trump's administration has its own calculations regarding US companies' investment plans abroad.
He argued that Apple's investment would also contribute to the US economy given Indonesia's large market. "If US companies are competing in markets outside the US, they might not have the ability to lobby their government. But as we know, Apple dominates the world even though it is not located in America — ultimately, the gross national product (GNP) will also be enjoyed by America, contributing to the economy," he explained.
Previously, Investment Minister/BKPM Rosan Roeslani said Apple's AirTag factory in Batam would be established in 2026. He added that the factory would absorb thousands of workers.
"The factory will be established in 2026 and this is the initial phase. Later, one of the vendors will supply 65% of global AirTags, which could create employment for 2,000 people," said Rosan.
Rosan revealed that Apple's investment in Batam amounts to US$1 billion, or approximately Rp16 trillion. However, the investment is expected to grow to as much as US$10 billion.
"That [US$1 billion] is the first phase. After that, we will discuss the next phases until the investment reaches US$10 billion," said Rosan.
Deputy for Investment Promotion at the Investment Ministry/BKPM, Nurul Ikhwan, said Apple is serious about building the factory. He noted that the company founded by Steve Jobs and Steve Wozniak has already purchased land in Batam.
"At the latest meeting with the Minister, they confirmed that land acquisition had been completed and they would build there. So certainly, if they have already purchased the land, there is no way they would not invest," said Nurul when met at the Investment Ministry office in Jakarta on Wednesday (23/4).
With the 32% reciprocal tariff imposed by the United States on Indonesia, Nurul noted this could potentially affect Apple's investment plans in Indonesia. Nevertheless, he expressed confidence that President Donald Trump's administration has its own calculations regarding US companies' investment plans abroad.
He argued that Apple's investment would also contribute to the US economy given Indonesia's large market. "If US companies are competing in markets outside the US, they might not have the ability to lobby their government. But as we know, Apple dominates the world even though it is not located in America — ultimately, the gross national product (GNP) will also be enjoyed by America, contributing to the economy," he explained.
Previously, Investment Minister/BKPM Rosan Roeslani said Apple's AirTag factory in Batam would be established in 2026. He added that the factory would absorb thousands of workers.
"The factory will be established in 2026 and this is the initial phase. Later, one of the vendors will supply 65% of global AirTags, which could create employment for 2,000 people," said Rosan.
Rosan revealed that Apple's investment in Batam amounts to US$1 billion, or approximately Rp16 trillion. However, the investment is expected to grow to as much as US$10 billion.
"That [US$1 billion] is the first phase. After that, we will discuss the next phases until the investment reaches US$10 billion," said Rosan.