Apple Inc. is currently considering launching the manufacturing of some gadgets from its product line in Indonesia.
The chief executive officer of the mentioned company, based in Cupertino, California, Tim Cook on Wednesday, April 17, in response to a request from the president of the specified country, Joko Widodo said that the technology giant is exploring the prospects for making devices in Indonesia.
It is worth noting that Apple is currently striving to develop production bases outside of China, which has become a kind of main manufacturing site for the firm in recent years. As part of the corresponding efforts, the company is considering the possibility of making devices in other countries. It is worth noting that the reduction in the scale of Apple’s so-called manufacturing presence in China is largely due to geopolitical circumstances. Currently, the relationship between Washington and Beijing is showing a tendency to deteriorate. The United States has restricted Chinese companies’ access to advanced chips and equipment needed to manufacture corresponding products. Fearing that sanctions will tighten and expand, businesses are considering options to reduce the level of interaction with Beijing. At the same time, many manufacturers are interested in maintaining their presence in Asia, which is a very important market for them. Against this background, some of the mentioned countries may become large production bases.
Tim Cook made a statement about the prospects of making the technology giant’s products in Indonesia the day after he revealed the company’s plans for operations in Vietnam.
The head of Apple in Hanoi held a meeting with the Prime Minister of the mentioned country Pham Minh Chinh. Tim Cook announced his intention to increase the volume of purchases of components and accessories from Vietnamese suppliers. A message was posted on the government’s website stating that the technology giant is to raise spending for local suppliers.
Pham Minh Chinh said that a dedicated working group will be set up to support Apple’s expansion in Vietnam. The Prime Minister also appealed to Tim Cook for help in developing a highly qualified workforce.
Apple has increased its commitments to Vietnam by an unspecified amount. Since 2019, the technology giant has spent almost 400 trillion dong ($15.8 billion) in this country through its supply chain partners. The company’s partners in Vietnam operate more than 70 factories with more than 250,000 employees.
During a conversation with journalists in Jakarta, held after a meeting with Joko Widodo and other government officials, Tim Cook said that he had discussed the development of production with the President of Indonesia. Apple’s CEO also described the investment opportunities of this country as endless.
During Tim Cook’s visit to Indonesia, the Apple Developer Academy was opened on the resort island of Bali. This project is part of an effort to meet the requirements for locally-made components and software for smartphones and other devices. Indonesian Information and Communication Technology Minister Budi Arie Setiadi said Apple has invested a total of 1.6 trillion rupees ($98.5 million) in four academies.
Joko Widodo is committed to shifting global manufacturing supply chains into Indonesia’s economy. As part of the related efforts, the country’s government has raised investments from automakers Hyundai Motor Co. and BYD Co. The media reports that Joko Widodo may hold a meeting with the CEO of Microsoft Corp. Satya Nadella by the end of April.
As we have reported earlier, Apple to Unveil AI Strategy in June.
