August 13, 2025 | 05:23 pm
TEMPO.CO, Jakarta – Deputy of Investment Promotion at the Indonesian Investment Coordinating Board (BKPM), Nurul Ichwan, has revealed that one of Apple's key suppliers, ICT Luxshare from China, has confirmed its investment in Batam. The company is preparing to build a new facility that will be a part of Apple's global supply chain.
"They have confirmed that Apple's supplier in Batam will definitely invest. The location is ready, and they have started preparations for the construction," Nurul said from the Nusantara Building of the Ministry of Investment in South Jakarta on Wednesday, August 13, 2025.
Nurul explained that the investment is strategic and requires a deliberate process. He noted that the company's business model is not to directly manufacture Apple devices, but rather to establish a supplier ecosystem to support global production needs.
"Only one [supplier] has entered. Let's just pray that, God willing, there will be other suppliers interested in Indonesia. Because they know Indonesia has a potential market and competitiveness to become part of the global supply chain," he stated.
He is confident that the presence of Apple suppliers in Indonesia will create a ripple effect, leading to job creation, technology transfer, and a stronger position for Indonesia in the global electronic supply chain.
Regarding the status of discussions with other potential suppliers, Nurul admitted the process is still in its early stages. "Not too far yet. If it's too far, we'll get lost again."
Nurul added that BKPM will continue to engage with various Apple suppliers to explore investment opportunities in Indonesia. However, he emphasized that these are not casual investors and require mature negotiation processes.
"God willing, with the competitiveness we have, we can invite more ecosystem from Apple suppliers to enter Indonesia," said Nurul.
Previously, Heru Sutadi, the Executive Director of the Information and Communication Technology (ICT) Institute, stated that Apple Inc.'s investment in AirTag production would not have a significant impact on Indonesia's telecommunications industry. According to him, the market for Apple's tracking device is not substantial domestically.
"The AirTag market is not large and has not contributed to the progress of the telecommunications industry," he said in an interview with Tempo on Saturday, May 3, 2025.
Currently, Apple is building a factory in Batam for the production of AirTags, with an investment valued at Rp16 trillion, or approximately US$1 billion. However, Heru believes that this factory will not influence product prices in Indonesia, given Apple's global uniform pricing policies.
Heru suggested that an investment in iPhone production would be far more impactful for the national telecommunications industry. "The iPhone market in Indonesia is quite large, especially in the high-end segment," he said. He believes such a move would significantly boost the growth of the telecommunications sector.
Alif Ilham Fajriadi contributed to the writing of this report
Editor's Choice: Trump's Tariffs to Cost Apple an Additional US$1.1 Billion
Click here to get the latest news updates from Tempo on Google News
Vehicles and Palm Oil Lead Indonesia's Export Commodities to Peru
18 jam lalu
The trade pact between the two nations promises to boost market access for exports and imports, strengthening industries on both sides.
Norway's Wealth Fund Divests from 11 Israeli Companies Amid Gaza War
1 hari lalu
The entire investment of Norway's Wealth Fund in Israeli companies is being reviewed. Investments in 11 Israeli companies have been withdrawn.
Indonesia Records Rp138.8tn in Energy Sector Revenue for First Half 2025
1 hari lalu
The Ministry of Energy and Mineral Resources noted that non-tax state revenue (PNBP) in the energy sector reached Rp138.8 trillion so far.
Minister Reports Growth in Indonesia's Energy Sector Investment
2 hari lalu
Indonesian Energy Minister Bahlil Lahadalia stated that the total energy investment for the first half of 2025 reached $13.9 billion.
OJK Blocks 66,000 Fraudulent Accounts as Losses Hit Rp4.1 Trillion
8 hari lalu
Since the launch of IASC on November 22 last year, OJK has received 204,011 reports related to illegal financial activities.
Apple to Develop Its Own AI Chatbot to Rival ChatGPT
8 hari lalu
Apple is forming a new team to design an AI 'answer engine' with capabilities based on information gathered from the internet.
Prospects for Indonesian Exports to EU Market Following IEU-CEPA Deal
9 hari lalu
Kadin is optimistic about the collaboration between Indonesia and the European Union and its potential to boost Indonesia's export value. What are the opportunities?
Trump's Tariffs to Cost Apple an Additional US$1.1 Billion
9 hari lalu
Apple reported that iPhone sales have surpassed 3 billion units globally since the device's initial launch in 2007.
Realization of Investment in Indonesia Reaches Rp477.7 Trillion in Q2, a Positive Sign
10 hari lalu
The Prasasti Center for Policy Studies assesses that the realization of investment in Indonesia reaching Rp 477.7 trillion in the second quarter is a positive sign amid global uncertainty.
Tim Cook Announces Apple's Plans to Increase AI Investments
12 hari lalu
Tim Cook stated that Apple is shifting a significant portion of its workforce to develop AI.
