Jakarta. The Industry Ministry has revealed that US technology giant Apple plans to invest approximately $200 million in an AirTag device manufacturing plant on Batam Island. This amount is significantly lower than the previously reported $1 billion investment pledge.

A ministry spokesperson said an initial assessment of Apple’s investment proposal revealed the reduced figure.

“Based on our technical assessment, the investment value for Apple’s AirTag factory in Batam is only $200 million, far below the $1 billion commitment outlined in the proposal submitted to us,” Febri Hendri Antoni Arif, the ministry’s spokesperson, said in Jakarta on Wednesday.

According to Febri, the $200 million figure includes capital expenditures such as land acquisition, construction costs, and equipment procurement.

The discrepancy arose because the government’s calculations did not account for export value projections and raw material supplies, which were included in Apple’s proposal, he explained.

“Apple’s $1 billion investment would be much more impactful if allocated solely to capital expenditure,” Febri added.

Additionally, Apple reportedly still owes the Indonesian government around $10 million in unmet investment commitments for the 2020-2023 period. Failure to fulfill these obligations could result in sanctions, including fines, suspension of business certificates, or even license revocation, according to Febri.

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