New factory to produce 65% of AirTags worldwide, boosting Indonesia’s economic growth.
Apple has commenced construction of its AirTag manufacturing facility in Batam, Indonesia, with operations expected to start in early 2026. The factory, backed by an initial investment of US$1 billion (SGD 1.35 billion), will contribute to supplying 65% of global AirTag demand while creating 2,000 new jobs.
Indonesia’s Investment Minister, Rosan Roeslani, announced Apple’s significant move to establish an AirTag production facility in Batam. This project, involving Apple’s vendors, underscores the region’s growing importance in global supply chains and its potential for substantial economic impact.
Apple’s Initial Investment and Goals
The project begins with a US$1 billion (SGD 1.35 billion) investment, with potential growth to US$10 billion (SGD 13.5 billion). This investment represents a key step in Apple’s global manufacturing strategy, focusing on AirTags.
The facility is set to create 2,000 new jobs and will supply 65% of Apple’s AirTags globally, marking a major milestone for both Indonesia’s workforce and Apple’s supply chain.
Land Acquisition and Construction
Construction in Batam is underway, with land acquisition and preparation completed. The vendor responsible for the project has ensured compliance with local requirements, aiming for operational readiness by February 2026.
Rosan highlighted discussions with other US companies interested in co-investing in Batam’s AirTag production ecosystem. These collaborations could further solidify Batam as a tech manufacturing hub.
Read More: iPhone 16 Still Banned in Indonesia Despite Apple’s New Factory in Batam
Beyond AirTag production, the factory’s presence could attract additional technology investments to Indonesia, bolstering local infrastructure and enhancing the region’s global competitiveness.
Apple’s Batam investment signals strengthened economic ties in Southeast Asia and increased manufacturing capacity in the region. It highlights Batam’s emerging role in global tech production while creating significant job opportunities.
Sources: Kontan, Kumparan (2025)
Keywords: Apple AirTag Factory, Batam Job Creation, 2,000 Jobs 2026
