Inp.polri.go.id - Jakarta. The Ministry of Industry revealed on Wednesday (22/1/2025) that Apple’s investment in its planned AirTag production facility in Batam amounts to just $200 million, far less than the $1 billion stated in the company's initial proposal.

“Based on our technocratic assessment, the actual investment for Apple’s AirTag factory in Batam is only $200 million. This figure is significantly lower than the $1 billion proposed by Apple,” Industry Ministry spokesperson Febri Hendri Antoni Arif said on Wednesday (22/1/2025), as quoted by antaranews.com.

He explained that the Ministry's calculations focus solely on capital expenditure, which includes land acquisition, building construction, and production machinery or technology. Export projections and raw material costs, which Apple included in its proposal, are not considered part of capital expenditure.

“If the $1 billion investment had been entirely allocated to capital expenditurex, it could have created far more jobs and economic impact,” Febri said.

He also noted that Apple has not fully complied with investment regulations from 2020 to 2023. The company still owes $10 million in required investment, which was due by June 2023.

Non-compliance could result in penalties, including additional investment requirements, freezing of domestic content certification, or even revocation of certification, Febri warned.

(mg/inp/pr/nm)