The Ministry Of Industry Ensures That Apple's AirTag Factory Investment Continues Even Though There Is An Import Tariff Agreement

JAKARTA - The Ministry of Industry (Kemenperin) ensures that Apple Inc's investment in the country is still going according to plan. The investment in question is an AirTag development plan in Batam, Riau Islands.

Spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif, confirmed that the investment was still ongoing as planned.

"So far, our MoU with Apple is still running according to track. God willing (stay ahead)," Febri told reporters at the Ministry of Industry Building, Jakarta, Thursday, July 31.

"Right, Apple's MoU investments, they want to build the Airtag industry in Batam and then they will increase the Apple Academy. And then they will build a research center in Indonesia. Research center in Indonesia is the second research center outside the United States," he continued.

According to Febri, there has been no further discussion between the Ministry of Industry and Apple after Indonesia and the United States (US) agreed on a trade tariff.

One of the points in the agreement concerns the rules of the Domestic Component Level (TKDN). Products from America are also exempt from entry rates.

"It must be remembered that Apple is an American company that produces outside America. Thus, its products are not American products," concluded Febri.

Apple has completed its commitment or debt worth 10 million US dollars which is the obligation throughout 2020-2023 as of December 16, 2024.

In fulfilling the mandatory sanctions of Permenperin Number 29 of 2017 concerning TKDN, Apple presents a company that is part of the global value chain, namely Luxshare-ICT to produce AirTag in the country.

The investment value of the AirTag factory in Batam reached 1 billion US dollars or around Rp. 16 trillion.

The facility is targeted to be able to meet 65 percent of AirTag's global needs.

The government targets factories to operate in early 2026.