Ministry assures Apple's US move will not impact Indonesia

Jakarta (ANTARA) - Deputy for Investment Promotion of the Ministry of Investment and Downstream Nurul Ichwan stated that US technology giant Apple's investment in its home country will not impact its planned investments in Indonesia.

"God willing (it will not be affected)," he remarked when met in Jakarta on Wednesday.

Ichwan explained that over the next four years of investment, the goal in the business sector is to increase product competitiveness.

He noted that competitiveness is not only about product quality but also includes price competition.

If Apple produces its components only in the United States, its products could only be sold in the domestic US market, he explained.

He then assessed that Apple would face market limitations if it relied solely on US production, as production costs in the US are higher compared to Apple products made in China and Vietnam.

"In my opinion, it will be impossible for Apple to do such a thing. The company will still need components made in China or Vietnam," he remarked.

To this end, he believes Apple's intentions in investing in the US will not affect its plan to invest in Indonesia.

Earlier, US President Donald Trump criticized Apple for not producing its devices domestically, threatening the company with a 25 percent tariff if domestic production was not increased.

Trump made this statement after Apple decided to shift part of its production from China to other countries, including Vietnam and India, in recent times.

Apple reportedly invested US$100 billion to address policy pressure linked to Trump's reciprocal tariffs.

This move is also part of Apple's original plan to invest US$500 billion in the US over the next four years, covering manufacturing programs and the return of more supply chain operations to its home country.