On Wednesday, April 17th, Tim Cook, the CEO of Apple, revealed during a meeting with Indonesian President Joko Widodo that the company is considering moving its production lines to Indonesia.
Cook told reporters after the meeting, “We discussed the President’s desire to develop manufacturing in Indonesia, and this is something we will consider.”
For years, the Indonesian government has been striving to attract manufacturing industries to drive economic development. Apple, on the other hand, is seeking to diversify its supply chain to break away from the situation where most of its smartphones and tablets are assembled in China.
During the COVID-19 pandemic, the lockdown measures taken by the Chinese authorities caused disruptions to Apple’s shipments, prompting the company to move some of its production lines to countries like Vietnam, and most recently, to India.
“I believe the investment opportunities in Indonesia are limitless. There are many areas worth investing in, and we are investing. We believe in this country,” Cook stated.
A day before, Cook met with Vietnamese Prime Minister Pham Minh Chinh in Hanoi. Cook mentioned that Apple plans to increase its investments in Vietnam and boost spending on suppliers in the Southeast Asian manufacturing hub.
Chris Miller, an associate professor at Tufts University, commented, “With the slowing economic growth in China and continuous efforts by the Chinese authorities to push out foreign companies and replace them with domestic brands, Apple is looking for other options in the manufacturing field.”
Miller added, “While Apple has increased investments in India and Vietnam, it is likely still exploring other partners in Southeast Asia to enhance its production and assembly operations.”
Prior to Cook’s visit to Indonesia, Apple announced the establishment of its fourth Apple Developer Academy in Bali. In 2018, the company launched a project to train application developers in Jakarta, the capital of Indonesia.
Although Apple does not have manufacturing facilities in Indonesia, the company has stated that it has invested 16 trillion Indonesian rupiah (approximately 99 million USD) in Indonesia’s app developer ecosystem.
The Indonesian government has banned the export of nickel and bauxite, among other raw materials, in an attempt to utilize these reserves to attract manufacturing industries and entice companies to build factories in Indonesia.
During his visit to Jakarta, Cook also met with Indonesia’s Defense Minister Prabowo Subianto, who is set to take office as President in October this year.
Indonesian Minister of Communication and Information, Budi Arie Setiadi, announced on April 17th that Microsoft CEO Satya Nadella will visit Indonesia at the end of April.