Apple is reportedly opening an AirTag factory in Batam, Indonesia early next yr, which can meet 65% of worldwide demand for tracking devices. Investment Minister Rosan Roeslani revealed that Apple also acquired land for this factory.
AirTag, a small coin-shaped device, is designed to assist users easily track personal items. The move is seen as a strategic effort by Apple to encourage the Indonesian government to lift its ban on the sale of the iPhone 16 within the domestic market.
Indonesia confirms Apple’s billion-dollar deal
Indonesia has banned the sale of the iPhone 16 on account of the corporate’s failure to comply with local content regulations, which require not less than 40% of components or manufacturing processes to be sourced from Indonesia.
In response, Apple initially proposed an investment of $10 million, which later increased to $100 million and eventually reached $1 billion, which was welcomed by President Prabowo Subianto.
Investment Minister Rosan Roeslani said she hoped the factory would attract more Apple suppliers to take a position in Indonesia, following examples from other countries corresponding to Vietnam, Malaysia and Thailand. The government also sees the factory as a gateway to Apple’s long-term investments within the country.
In addition to meeting 65% of worldwide AirTag demand, the ability is anticipated to create as much as 2,000 jobs, with Apple’s investment expected to extend from $1 billion to $3 billion, $4 billion, $5 billion, and ultimately reach its goal amount of USD 10 billion.
The Ministry of Industry questions Apple’s investment in AirTag
Although the federal government is encouraging Apple to take a position to lift the ban on the sale of the most recent iPhone in Indonesia, the AirTag factory project in Batam has yet to persuade the Ministry of Industry.
Industry Minister Agus Gumiwang Kartasasmita stated that the investment within the AirTag factory doesn’t meet the local content requirements (LCR) applicable to the iPhone 16. As a result, the Ministry of Industry has presented a counter-proposal in the continuing negotiations with Apple, although a gathering with representatives of Apple 7 January didn’t lead to an agreement.
While the AirTag facility in Batam is scheduled to start operations in 2026, Agus stressed that AirTag will not be considered an adjunct or a part of a cell phone, computer or tablet (HKT). Therefore, it will not be subject to the Local Content Requirements (LCR) under Permenperin No. 29/2017 and Permenkominfo No. 27/2015.
