The Indonesian Ministry of Industry (Kemenperin) has confirmed that Apple’s investment in Indonesia remains on track. This development has drawn public attention following Indonesia’s recent trade agreement with the United States (US), which included a request from the US to eliminate the Local Content Requirement (TKDN).

Apple has already acquired land in Batam, designated for the construction of its AirTag manufacturing facility. According to Alexandra Arri Cahyani, Head of the Ministry’s Public Relations Bureau, the tech giant’s investment is proceeding as planned.

“Apple’s investment seems to still be on track,” she stated in Jakarta, Monday (July 28, 2025).

Alexandra also shared that the government is currently working on plans to reform the TKDN policy. She noted that the new regulation will be issued in the form of a Ministerial Regulation by Minister of Industry Agus Gumiwang Kartasasmita.

“We are still discussing the TKDN policy. The full reform will be launched by the Minister. As for the date, please wait. But one thing’s for sure — TKDN will remain under our authority,” Alexandra explained.

She emphasized that the outcome of the TKDN reform would not be limited to the United States. For context, the US had earlier asked Indonesia to eliminate non-tariff export barriers after both countries agreed to lower import tariffs to 19%.

As part of the agreement, the US requested that TKDN requirements be waived for American companies and products. However, the Indonesian government has clarified that not all US products would be exempt from TKDN regulations.

“This reform isn’t entirely about the US. Many other countries’ products are also involved. If we only focus on the US, it would be considered discriminatory,” said Alexandra.

Regarding the possibility of TKDN exemptions for specific sectors, Alexandra mentioned that the matter is still under internal review within the Ministry. She stressed that any modifications to TKDN rules would be applied broadly and not just for American products.

Even so, Alexandra could not yet specify when the new regulation would be issued. Discussions are still ongoing between the Minister of Industry and top-level officials at the Ministry to finalize the TKDN reform.

On the same occasion, Alexandra also highlighted the crucial role TKDN plays in maintaining the competitiveness of local products against imported goods. By enforcing TKDN, more domestic raw materials can be absorbed and converted into finished goods.