During a meeting with Indonesian President Joko Widodo, Apple CEO Tim Cook said the company would consider building a manufacturing facility in the country. “We talked about the president’s wishes and that’s something we’ll look at,” CEO Tim Cook told reporters after meeting the head of government.
Apple’s deliberations come as the company looks to diversify its supply chain away from China, where it still assembles the bulk of its iPhones and iPads. Since the pandemic, the tech giant has begun shifting some production to countries like Vietnam and India.
Jakarta is the next stop for the Apple captain, after Vietnam. In the Southeast Asian island nation, Tim Cook will attend the inauguration of Apple's fourth programming academy.
"I think the possibilities for investment in Indonesia are endless. There are so many great places to invest and we're doing it. We believe in this country," said Mr. Tim Cook.
Currently, Apple does not have any manufacturing facilities in Indonesia, but since 2018, the "apple house" has established programmer training academies here, with a total investment of about 99 million USD.
If Apple decides to build a factory, they will “discuss how this facility can become a global supply chain,” the Indonesian industry minister said. In addition, in case the iPhone giant does not invest, the parties can still cooperate with Indonesian businesses to produce components.
Products sold in Indonesia must meet a requirement of having at least 35% local “content.” Apple has met that target by building academies, but Mr. Widodo’s government hopes to push that figure higher with a manufacturing plant.
Apple is placing the majority of its iPad, AirPods and Apple Watch production in Vietnam, alongside investments by its supply partners in the country.
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