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Apple CEO says company will 'look at' manufacturing in Indonesia

Apple CEO says company will 'look at' manufacturing in Indonesia


JAKARTA, Indonesia (AP) Apple CEO Tim Cook said the company would consider manufacturing in Indonesia when he met with Indonesian President Joko Widodo on Wednesday.

“We talked about the president's desire to see manufacturing in the country, and that's something we'll look at,” Cook told reporters after the meeting.

The Widodos administration has worked for years to bring manufacturing to the country to spur economic development, while Apple is looking to diversify its supply chains away from China, where most of its smartphones and tablets are assembled.

The company began moving some of its production to countries like Vietnam and, more recently, Indiaafter closures to fight COVID-19 in China repeatedly disrupted company shipments.

I think the investment capacity in Indonesia is endless. I think there are many interesting places to invest, and we are investing. We believe in the country, Cook said.

The day before, Cook met with Vietnamese Prime Minister Pham Minh Chinh in Hanoi, where he said Apple plans to invest more in Vietnam and increase spending with suppliers in the Southeast Asian manufacturing hub.

Given China's slowing economy as well as the Chinese government's continued efforts to oust foreign companies and replace them with domestic brands, Apple is looking for manufacturing alternatives, said Chris Miller, an associate professor at the University. Tufts whose work focuses on technology and geopolitics.

It has already invested more in India and Vietnam, but it likely plans to look to other partners in Southeast Asia for additional manufacturing and assembly operations, Miller said.

Cook's visit to Indonesia came after Apple announced the establishment of the fourth Apple Developer Academy in the country, which will be located in Bali. The company first launched the app developer training program in Indonesia in 2018, in the capital Jakarta.

Apple has no manufacturing plants in Indonesia, but the company says it has invested 1.6 trillion rupiah ($99 million) in its app developer ecosystem in the country.

Widodo's government has sought to exploit the country's reserves of nickel and other raw materials to expand industry, banning the export of raw materials such as nickel and bauxite to force companies to build refineries in the country.

After the meeting with Widodo, Cook also met with Indonesian President-elect Prabowo Subianto, currently defense minister, in Jakarta. He is expected to take power in October.

Indonesian Minister of Communication and Information Budi Arie Setiadi said on Wednesday that Microsoft CEO Satya Nadella will visit Indonesia at the end of April. ___

Associated Press writers Victoria Milko in Jakarta and Zen Soo in Hong Kong contributed to this report.

Edna Tarigan and Achmad Ibrahim, Associated Press




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