TKDN Relaxation Will Not Affect Apple's Existing Investment in Indonesia, Says Deputy Minister
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has affirmed that plans to relax domestic content requirements (TKDN) will not affect technology giant Apple Inc.'s existing investments in Indonesia.
Deputy Minister of Investment and Downstreaming/BKPM Todotua Pasaribu said Apple is continuing to fulfil its investment commitments. Apple had previously been set to begin producing AirTags in Batam from February 2026.
"There is no impact. Apple's investment is already under way in several areas, with several others in preparation," Todotua told reporters at the Coordinating Ministry for Economic Affairs office on Monday (14 April 2025).
The construction of Apple's AirTag factory in Batam requires an investment of US$150 million. The facility will supply 65 per cent of global AirTag demand. Apple has brought in global value chain (GVC) partner ICT Luxshare to manufacture the devices.
Todotua assessed that the investment would not be affected by the government's planned TKDN deregulation. To meet TKDN requirements, Apple opted for an innovation investment scheme, which includes expanding Apple Academy in Indonesia and building a research and development (R&D) centre.
To obtain TKDN certification, Apple conducted lengthy negotiations with the Ministry of Industry. The company has also settled its investment extension obligations under the third scheme, valued at US$10 million.
According to Ministry of Industry records, Apple Inc. has also committed to sourcing AirTag battery components from domestic manufacturers. Additionally, the technology giant is preparing a production line at Long Harmony in Bandung to produce mesh fabric for AirPods Max, making Long Harmony part of Apple's GVC.
For the next cycle, Apple will bring in US$160 million in hard cash to fulfil its TKDN obligations under scheme three, or innovation investment.
Apple's efforts to secure TKDN certification ultimately bore fruit, enabling the iPhone maker to officially sell its latest flagship series, the iPhone 16, in Indonesia.
Following the protracted TKDN dispute that had delayed Apple sales in Indonesia, a new issue emerged with US President Donald Trump's imposition of 32 per cent reciprocal tariffs on Indonesian products. One factor behind Trump's tariff decision was Indonesia's TKDN policy.
The Indonesian government has responded by seeking to negotiate a relaxation of TKDN requirements for US-origin information and communication technology (ICT) products. However, these negotiations remain at the proposal stage, as a government delegation is scheduled to visit the US administration from 16 to 23 April 2025.
Deputy Minister of Investment and Downstreaming/BKPM Todotua Pasaribu said Apple is continuing to fulfil its investment commitments. Apple had previously been set to begin producing AirTags in Batam from February 2026.
"There is no impact. Apple's investment is already under way in several areas, with several others in preparation," Todotua told reporters at the Coordinating Ministry for Economic Affairs office on Monday (14 April 2025).
The construction of Apple's AirTag factory in Batam requires an investment of US$150 million. The facility will supply 65 per cent of global AirTag demand. Apple has brought in global value chain (GVC) partner ICT Luxshare to manufacture the devices.
Todotua assessed that the investment would not be affected by the government's planned TKDN deregulation. To meet TKDN requirements, Apple opted for an innovation investment scheme, which includes expanding Apple Academy in Indonesia and building a research and development (R&D) centre.
To obtain TKDN certification, Apple conducted lengthy negotiations with the Ministry of Industry. The company has also settled its investment extension obligations under the third scheme, valued at US$10 million.
According to Ministry of Industry records, Apple Inc. has also committed to sourcing AirTag battery components from domestic manufacturers. Additionally, the technology giant is preparing a production line at Long Harmony in Bandung to produce mesh fabric for AirPods Max, making Long Harmony part of Apple's GVC.
For the next cycle, Apple will bring in US$160 million in hard cash to fulfil its TKDN obligations under scheme three, or innovation investment.
Apple's efforts to secure TKDN certification ultimately bore fruit, enabling the iPhone maker to officially sell its latest flagship series, the iPhone 16, in Indonesia.
Following the protracted TKDN dispute that had delayed Apple sales in Indonesia, a new issue emerged with US President Donald Trump's imposition of 32 per cent reciprocal tariffs on Indonesian products. One factor behind Trump's tariff decision was Indonesia's TKDN policy.
The Indonesian government has responded by seeking to negotiate a relaxation of TKDN requirements for US-origin information and communication technology (ICT) products. However, these negotiations remain at the proposal stage, as a government delegation is scheduled to visit the US administration from 16 to 23 April 2025.