Minister of Industry Agus Gumiwang has revealed that Apple Inc. is still reluctant to invest in building a Mobile Phone, Handheld Computer, and Tablet (HKT) factory in Indonesia.
“They always say that they have never invested in building HKT factory in another country. They told us that. Then I said, ‘It’s always the first time, there must be a first time,'” Agus told a press conference on Wednesday, January 8, 2025.
He cited that the Indonesian government did not demand that Apple build a complete iPhone manufacturing factory, but asked Apple to build a manufacturing facility that is directly related to main products such as mobile phones and other related devices.
AirTag Factory
Apple has expressed its commitment to build an AirTag factory in Batam, Riau Islands, with an investment value of US$1 billion. AirTag is a small device for tracking the location of important items that can be connected to Apple products, such as iPhone and iPad.
However, Agus emphasized that the construction of the AirTag factory does not meet the requirements for obtaining a Local Content (TKDN) permit for Apple’s main products such as iPhone, iPad, and MacBook. This is due to the provisions in Minister of Industry Regulation No. 29/2017, which stipulates that the investment value can only be given TKDN if it is directly related to HKT.
“We appreciate Apple’s investment in producing AirTag, but it cannot be linked to Minister Industry Decree No. 29/2017. Rigidly, the regulation states that only investments directly related to HKT can get TKDN,” explained Agus.
Agus warned that without TKDN certification, products such as the iPhone 16 which have not yet entered the Indonesian market, will not be able to be released. The same applies to other Apple products in the future.
Minister of Investment and Downstream/Head of the Investment Coordinating Board (BKPM) Rosan P. Roeslani previously announced that Apple had agreed to build an AirTag factory in Indonesia as part of the first phase of their investment.
“Essentially they talked and were fully committed to the first phase of AirTag development worth US$1 billion,” Rosan said after meeting Apple’s Vice President of Global Policy, Nick Amman, in Jakarta on Tuesday, January 7 , 2025.
The government hopes that Apple can consider the proposal to build a factory that is more relevant to their main products. This step will not only have a greater economic impact, but also allow Apple to meet regulatory requirements and launch its flagship products in the Indonesian market.
