Indonesia expects more Apple supplier to build facilities in Riau Islands: minister

Indonesia is expecting more Apple suppliers to build facilities in the archipelago, as the tech giant unveiled an investment commitment of $1 billion in an AirTag tracking device factory in Batam, Riau Islands, said a minister.

Indonesia is looking to attract more Apple suppliers, Investment and Downstream Minister Rosan Roeslani said, claiming that several new suppliers have proposed investing in the country. He noted that Indonesia currently has just one supplier for Apple, far fewer than countries like Vietnam, which has 34 suppliers.

Meanwhile, data from the Indonesian Industry Ministry showed that the country led Southeast Asia in iPhone sales with 2.5 million units sold, generating IDR30 trillion ($1.83 billion) in revenue for the tech giant. Rosan assured that Apple's investment in the country is progressing and going well.

He added that the number of suppliers is still in its early stages and will definitely continue to increase.

Meanwhile, according to Bloomberg Technoz, Apple's investment in Batam is not directly from Apple but from a partner supplier.

Minister Rosan said this is understandable because Apple has been working with its suppliers to build its own factories in many countries such as India, Vietnam, Malaysia and Indonesia.

In Indonesia, Apple has made progress in its investment, starting with the purchase of land in Batam.

Rosan expressed his hope that the company's investment in the AirTag facility will increase over time from $1 billion to $5 billion, with the goal of reaching $10 billion.

The AirTag factory is projected to be operational in 2026, meeting 65% of Apple's global demand for tracking devices and creating up to 2,000 jobs, according to Indonesia's Ministry of Investment and Downstream.

Over the years, Apple has built and operated development academies to meet local content obligations as an alternative to establishing local manufacturing units in Indonesia. But the ministry has asked the company to do more, including building research and development (R&D) centers.