Apple plans to build a factory in Batam, Riau Islands, with an investment of US$1 billion (Rp16 trillion) after its investment plan was approved by President Prabowo Subianto.
Apple’s factory in Batam will later produce a tracking device developed by Apple called AirTag, designed as a key finder to help people find personal belongings, such as keys, bags, apparel, small electronic devices and vehicles.
“President Prabowo Subianto was briefed on this investment in a meeting held over the weekend, discussing the tug-of-war between the government and Apple,” a source said as by Bloomberg on Thursday, December 19, 2024.
Apple chooses Batam because the region has the free trade zone status and can be reached in about 45 minutes by ferry from Singapore, a trading hub in Southeast Asia.
“Apple is arranging for one of its suppliers to produce AirTag in Indonesia, and gradually increase production,” the source said.
Later, the factory is expected to employ around 1,000 workers at the start of operations and to produce 20 percent of global AirTag production.
In addition, Apple will also produce other accessories. However, the source did not specify the type.
In addition to Apple’s investment in Batam, Apple will continue to develop the Apple Developer Academy located in Tangerang, Banten; Surabaya in East Java, and Batam.
