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Apple CEO Considers Manufacturing Facility in Indonesia

Apple CEO, Tim Cook, considers building a manufacturing facility in Indonesia. The company has been investing in app developer academies in Indonesia since 2018. Indonesia's industry minister sees the potential for Apple's facility to contribute to the global supply chain.

Apple Inc is exploring the possibility of establishing a manufacturing facility in Indonesia, according to CEO Tim Cook. The announcement came after Cook's meeting with President Joko Widodo, who expressed his desire for Apple to increase its local content by partnering with domestic firms.


During his visit to Jakarta, Cook met with President Widodo, popularly known as Jokowi, and also attended the inauguration of Apple's fourth developer academy on the island of Bali. Speaking to reporters after the meeting, Cook stated, "We talked about the president's desire to see manufacturing in the country, and it is something that we will look at."


Currently, Apple does not have any manufacturing facilities in Indonesia. However, since 2018, the company has been establishing app developer academies in the country, with a total cost of 1.6 trillion rupiah ($99 million), including the newly inaugurated academy.


Indonesia's industry minister, Agus Gumiwang Kartasasmita, who was also present at the meeting, expressed optimism about the potential for Apple's manufacturing facility in Indonesia to contribute to the global supply chain. He stated, "We will discuss how Apple's facility in Indonesia could become a global supply chain," and added that even if Apple does not build a factory, it could collaborate with Indonesian companies to source components.


By investing in developer academies, Apple has already met Indonesia's 35% local content requirement to sell its products. However, the government hopes that the establishment of a manufacturing facility will further increase this percentage. The capacity to produce for export is also seen as a significant advantage if Apple decides to build a facility in Indonesia.


Apple has predominantly relied on manufacturing in Vietnam for its key products such as iPads, AirPods, and Apple Watches. Additionally, suppliers for MacBooks have also been investing in Vietnam. However, with Indonesia's large and tech-savvy population, the country presents a lucrative market for tech-related investments.

 
  • Apple CEO, Tim Cook, considers building a manufacturing facility in Indonesia.

  • The company has been investing in app developer academies in Indonesia since 2018.

  • Indonesia's industry minister sees the potential for Apple's facility to contribute to the global supply chain.


Source: REUTERS

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