Apple eyes Indonesia as new manufacturing base

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Apple manufacturing in Indonesia could happen, CEO Tim Cook implied
Apple manufacturing in Indonesia could happen, CEO Tim Cook implied.
Photo: Fortune Global Forum/Flickr CC

Apple CEO Tim Cook told the president of Indonesia Wednesday the company will “look at” manufacturing in the country, according to reports.

Such a move would make for another expansion of Apple’s push to diversify manufacturing sites outside of China, as it has done in Vietnam and India.

Apple will ‘look at’ manufacturing in Indonesia, Cook says

Cook made the statement in a meeting with Indonesian President Joko Widodo. His administration has worked hard to bring more industry to the country, the Associated Press reported.

“We talked about the president’s desire to see manufacturing in the country, and it’s something that we will look at,” Cook said to reporters afterward.

“I think the investment ability in Indonesia is endless,” he added. “I think that, there is a lot of great places to invest, and we’re investing. We believe in the country.”

After COVID-19-related shutdowns at plants in China, Apple began to move manufacturing to Vietnam and later to India to diversify its supply chain. Now 1 in 7 iPhones are made in India.

After his meeting with Widodo, Cook spent time with Indonesia’s defense minister and president-elect, Prabowo Subianto. He takes power over the country in October.

Committing to Southeast Asia

On Tuesday Cook met with Indonesia’s Vietnamese Prime Minister Pham Minh Chinh in Hanoi. He said Apple intends to invest further in Vietnam and spend more money with suppliers in Southeast Asia generally.

“Given the slowing Chinese economy as well as the Chinese government’s ongoing efforts to squeeze out foreign companies and replace them with domestic brands, Apple wants alternatives for manufacturing,” said Chris Miller. He’s an associate professor focusing on technology and geopolitics at Tufts University.

“It has already invested more in India and Vietnam, but it is likely looking at other partners in South East Asia to additional manufacturing and assembly operations,” he added.

Cook’s Indonesia visit also dovetailed with Apple’s statement it would open its fourth Apple Developer Academy in the country, in Bali. The app developer training program first arrived in the country’s capital, Jakarta, in 2018.

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