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Apple's AirTag investment not significant for Indonesian telecommunication industry, observer says

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Tempo - May 4, 2025

Alif Ilham Fajriadi, Jakarta – The director of the Information and Communication Technology (ICT) Institute, Heru Sutadi, believes that Apple's investment in producing AirTag has not had a significant impact on the telecommunication industry in Indonesia.

According to him, the Apple tracker device has not gained much attraction in the domestic market. "The AirTag market is not significant and has not contributed to the advancement of the telecommunication industry," said Heru when contacted by Tempo on Saturday, May 3, 2025.

Currently, Apple is building a factory in Batam City to produce AirTag, with an investment value of around Rp 16 trillion or approximately US$1 billion. However, according to Heru, the existence of this factory will not affect the product prices in Indonesia, considering Apple is a global company with consistent pricing policies across different countries.

Heru added that if Apple were to invest in producing iPhones in Indonesia, the impact would be much more significant for the national telecommunication industry. "The iPhone market in Indonesia is quite substantial, especially in the high-end segment," he said. According to him, this would further drive the growth of the telecommunication sector.

The Minister of Investment and Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, stated that Apple has committed to building an AirTag factory in Batam. The factory is scheduled to start operating in 2026. "It is hoped that 65 percent of the global AirTag demand can be fulfilled from the factory built in Batam," said Rosan.

Rosan has also met with several Apple executives, including the Vice President of Global Policy Apple, Nick Ammann, and the Corporate Communications and Public Relations Head of Apple Southeast Asia, Brett Galvin. The meeting lasted for almost an hour, from 6:00 PM to 6:50 PM WIB (Western Indonesian time), on Tuesday, January 7, 2025.

– Sultan Abdurrahman contributed to the writing of this article.

Source: https://en.tempo.co/read/2003349/apples-airtag-investment-not-significant-for-indonesian-telecommunication-industry-observer-say

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