Apple to 'look at' Manufacturing in Indonesia

Apple CEO Tim Cook recently stated that the company is considering manufacturing its products in Indonesia after discussions with the country's President, Joko Widodo, as part of Apple's ongoing plan to diversify its supply chain away from China and reduce risk.

During a statement to reporters after the meeting, Cook was willing to talk about the possibility of production there and acknowledged the wish of President Widodo to see the indonesian manufacturing sector grow. He also highlighted huge opportunities for investment in Indonesia and noted that Apple could play an important part in the growth of the country's economy.

This search for new manufacturing locations is a strategic reaction to the problems experienced during the COVID-19 pandemic when the risks of being too dependent on China for production were highlighted. The shutdown of all production of Apple's iPhone in China, managed by Foxconn, has pushed Apple to start setting up new manufacturing plants in different locations.

Vietnam, in particular, has already benefited from Apple's supply chain diversification plans, and close neighbor Thailand has become another important country for Apple by producing MacBooks, iPads, and Apple Watches for more than a year.

Apple has also broadened its production operations in India, with more than 14% of new iPhones now produced there, a move consistent with Apple's wider strategy of focusing on India's growing market opportunities and exploiting government incentives that favor local assembly.

Expanding manufacturing operations to Indonesia presents opportunities for economic growth and job creation in the country, can stimulate investment, foster technology transfer, and contribute to the development of local industries and infrastructure. Apple's potential investment in Indonesia could also catalyze broader economic development initiatives and bolster bilateral trade relations between Indonesia and other countries.

Overall, considering Indonesia underscores Apple's strategic desire to adapt to evolving market dynamics, mitigate risks, and capitalize on emerging opportunities.