Indonesia is actively seeking to become a key player in Apple Inc.’s global supply chain by encouraging the American tech giant to establish a manufacturing facility in the country, similar to what has been achieved by Vietnam in the region.
What’s New
The Indonesian government, led by President Joko Widodo, has been in talks with Apple’s CEO Tim Cook, emphasizing the potential market and strategic benefits of setting up production capabilities locally. These discussions were highlighted during Cook’s recent visit to the Presidential Palace in Jakarta.
Behind The News
Currently, Apple has invested approximately IDR 1.6 trillion in Indonesia’s human resources, establishing four Apple Developer Academies in various locations across the country. Despite these investments and the large volume of Apple products imported into Indonesia—valued at around USD 2 billion in 2023 alone—the country still lacks a local manufacturing facility that could integrate into Apple’s global supply chain.
Why it Matters
Establishing an Apple factory in Indonesia could significantly reduce import costs and improve the nation’s technological infrastructure and expertise. More importantly, it could position Indonesia not just as a market for high-end consumer electronics but as an integral part of the production and export process within the global tech industry.
What We Are Thinking
The move to bring Apple manufacturing to Indonesia is not just about meeting domestic demand but is strategically aimed at integrating into the global supply chain. This could enhance Indonesia’s economic stature and provide a significant boost to its technology sector. However, challenges remain in terms of competing with other countries like Vietnam, which already contributes significantly more components to Apple products. The Indonesian government’s push highlights a commitment to increasing domestic production capabilities and exporting locally manufactured tech components globally.
Reference: https://investor.id/business/359478/indonesia-ingin-jadi-bagian-rantai-pasok-global-apple/2
