Trade War Turbulence Will Not Hinder Apple's Investment in Indonesia, Says Investment Minister Rosan
TEMPO.CO, Jakarta - Investment and Downstreaming Minister/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani has said that trade war turbulence will not hinder Apple Inc.'s investment in Indonesia. On the contrary, he stated that this type of investment would actually increase in tandem with US President Donald Trump's import tariff policies.
Rosan disclosed that the multinational technology company headquartered in Cupertino, California, has already purchased land in Batam City as a commitment to continuing its investment. "Land clearing has already been carried out, so investment continues despite geopolitical and economic tensions," Rosan told reporters at the BKPM office in South Jakarta on Tuesday, 29 April 2025.
According to Rosan, Apple's investment in Indonesia remains on track in line with its initial commitment to build a factory worth US$1 billion or Rp16.14 trillion. "Based on our communications with them, we see that Apple's investment will actually increase," said Rosan.
The CEO of the Danantara Investment Management Agency recounted that he had met with three Apple vendors investing in Indonesia. However, Rosan did not elaborate on who these three vendors were. He only mentioned Huayou as an Apple partner that supplies numerous components from China.
Huayou is a Chinese company that has invested in several projects, including the construction of the Indonesia Weda Bay Industrial Park (IWIP). More recently, the company replaced LG Energy Solution in the Titan Project, an electric vehicle (EV) battery supply chain initiative.
Rosan explained that a single iPhone 16 unit requires approximately 340 types of components. The entry of new investment and the involvement of additional vendors going forward means Indonesia has the potential to become a component supplier, including for components that receive import duty tariff exemptions, particularly for laptops and mobile phones.
"This is an opportunity we are trying to explore further so that investment in Indonesia can increase," said Rosan.
Previously, several Apple executives had met with Rosan, including Apple Vice President of Global Policy Nick Ammann and Apple Southeast Asia Corporate Communications and Public Relations representative Brett Galvin. Their meeting lasted nearly one hour, from 18:00 to 18:50 Western Indonesian Time on Tuesday, 7 January 2025.
Apple had initially planned to invest US$100 million, or approximately Rp1.61 trillion. This investment was intended to fulfil the Indonesian government's requirements for local content levels (TKDN) so that the Apple iPhone 16 could be sold in Indonesia. However, the government asked them to raise their investment commitment to US$1 billion, equivalent to Rp16.14 trillion.
Rosan disclosed that the multinational technology company headquartered in Cupertino, California, has already purchased land in Batam City as a commitment to continuing its investment. "Land clearing has already been carried out, so investment continues despite geopolitical and economic tensions," Rosan told reporters at the BKPM office in South Jakarta on Tuesday, 29 April 2025.
According to Rosan, Apple's investment in Indonesia remains on track in line with its initial commitment to build a factory worth US$1 billion or Rp16.14 trillion. "Based on our communications with them, we see that Apple's investment will actually increase," said Rosan.
The CEO of the Danantara Investment Management Agency recounted that he had met with three Apple vendors investing in Indonesia. However, Rosan did not elaborate on who these three vendors were. He only mentioned Huayou as an Apple partner that supplies numerous components from China.
Huayou is a Chinese company that has invested in several projects, including the construction of the Indonesia Weda Bay Industrial Park (IWIP). More recently, the company replaced LG Energy Solution in the Titan Project, an electric vehicle (EV) battery supply chain initiative.
Rosan explained that a single iPhone 16 unit requires approximately 340 types of components. The entry of new investment and the involvement of additional vendors going forward means Indonesia has the potential to become a component supplier, including for components that receive import duty tariff exemptions, particularly for laptops and mobile phones.
"This is an opportunity we are trying to explore further so that investment in Indonesia can increase," said Rosan.
Previously, several Apple executives had met with Rosan, including Apple Vice President of Global Policy Nick Ammann and Apple Southeast Asia Corporate Communications and Public Relations representative Brett Galvin. Their meeting lasted nearly one hour, from 18:00 to 18:50 Western Indonesian Time on Tuesday, 7 January 2025.
Apple had initially planned to invest US$100 million, or approximately Rp1.61 trillion. This investment was intended to fulfil the Indonesian government's requirements for local content levels (TKDN) so that the Apple iPhone 16 could be sold in Indonesia. However, the government asked them to raise their investment commitment to US$1 billion, equivalent to Rp16.14 trillion.