Apple recently committed to investing $1 billion in Indonesia to support the launch of future products, including the iPhone 16 series. The investment, equivalent to around IDR 15.95 trillion, will fund the construction of a new AirTag factory in Batam, Indonesia, which is expected to account for 20% of global AirTag production. The company also plans to establish manufacturing facilities in Bandung for AirPods Max accessories.

This investment comes at a time when Apple is expanding its global supply chain and ramping up production to meet the rising demand for its devices. The factory in Batam, located within the Free Trade Zone (FTZ), offers Apple several advantages, such as tax and customs exemptions. Batam, situated just 45 minutes from Singapore, is a strategic location for the company due to its proximity to international trade routes and its status as an industrial hub.

The Batam facility will not only help Apple meet its production targets but also create new jobs. Initial reports suggest the factory could employ around 1,000 workers in its early stages. This move is in line with Indonesia's broader efforts to attract foreign direct investment (FDI) and enhance its manufacturing capabilities. Batam is already home to a variety of industries, including electronics, shipbuilding, and logistics, making it an ideal location for Apple’s new venture.

Apart from the factory, the investment will also fund the establishment of an Apple Developer Academy in Indonesia, further contributing to the country's tech ecosystem. This academy will provide training for developers to create innovative applications for Apple’s platforms, including iOS, macOS, watchOS, and tvOS. Apple aims to strengthen its presence in Southeast Asia and tap into the region’s growing tech talent pool.

In addition to the Batam factory, Apple is also planning to set up a production facility in Bandung to manufacture mesh components for AirPods Max, starting in 2025. This move will integrate Apple’s manufacturing processes more closely with its global supply chain, improving efficiency and reducing production costs.

While the Indonesian government has not yet finalized the details of Apple’s investment, the country’s Minister for Investment, Rosan Roeslani, confirmed that the plan is in the final stages of approval. Apple’s investment aims to secure its presence in the Indonesian market, with the hope of boosting the local economy, creating jobs, and facilitating the sale of products like the iPhone 16 in the country.

KOMPAS