Apple CEO Explores Manufacturing Opportunities in Indonesia as Part of Supply Chain Diversification
Apple CEO Tim Cook announced that Apple will consider manufacturing in Indonesia following a meeting with Indonesian President Joko Widodo.
The Indonesian government has been pushing for manufacturing to boost economic development, while Apple aims to diversify its supply chains beyond China, where most of its products are made.
Apple has already started producing some devices in countries like Vietnam and India to reduce reliance on China and mitigate disruptions caused by Covid-19 shutdowns.
Apple's CEO, Tim Cook, expressed his optimism about investment opportunities in Indonesia and announced plans to increase investment and spending on suppliers in Vietnam.
The reason for this shift is the slowing Chinese economy and the Chinese government's efforts to replace foreign companies with domestic brands, according to Chris Miller, a professor at Tufts University.
Apple has already invested more in India and Vietnam, but is likely looking for additional manufacturing and assembly operations in Southeast Asia as alternatives to China.
Apple executive, Cook, visited Indonesia following the announcement of a new Apple Developer Academy in Bali.
Apple initiated the developer training program in Indonesia in 2018, in Jakarta.
Despite having no manufacturing facilities in the country, Apple has invested approximately US$99 million in Indonesia's app developer ecosystem.