Apple Considering Manufacturing Plant in Indonesia
According to Reuters, Apple may set up shop in Indonesia. Following a meeting with Indonesian President Joko Widodo, Apple CEO Tim Cook announced the company will "look at" the possibility of building a manufacturing facility in the country.
Why Indonesia?
- Growing Market: Indonesia boasts a large and tech-savvy population, making it an attractive target market for tech giants like Apple.
- Local Content Boost: The Indonesian government is keen to see companies like Apple increase local production, hoping to create jobs and boost the domestic economy. Apple currently invests in developer academies but may explore additional avenues to meet Indonesia's 35% local content requirement.
- Manufacturing Hub Potential: Indonesia's industry minister envisions an Apple facility that will not only serve the domestic market but also contribute to the company's global supply chain.
Current Situation:
- No Manufacturing Yet: Apple has no manufacturing facilities in Indonesia as of now. Since 2018, they've focused on establishing app developer academies.
- Focus on Vietnam: Currently, Vietnam is Apple's main production hub in Southeast Asia for iPads, AirPods, and Apple Watches.
What's Next?
While a decision hasn't been made, Apple seems open to the possibility. Discussions between Apple and the Indonesian government will continue, exploring options like partnering with local companies for component production or building a full-fledged manufacturing facility.
This development could mark a significant shift for Apple's manufacturing footprint in Southeast Asia, offering exciting possibilities for both Apple and Indonesia.
Investor
Outbound region
Inbound region
Industry
Consumer goods
Electronic Manufacturing
Date of record
17 April 2024
