President Widodo calls on Apple CEO to expand manufacturing operations in Indonesia

• Apple has primarily centered manufacturing of iPads, AirPods, and Apple Watches in Vietnam and India.
• Indonesia’s mobile phone market is dominated by Oppo (18%) and Samsung (17%), with Apple holding an 11.5% share.
• Apple CEO Tim Cook expressed confidence in Indonesia’s investment potential and commitment to the country.

On Wednesday, Indonesian President Joko Widodo met with the head of tech giant Apple and urged him to open a manufacturing facility there. CEO Tim Cook was in Jakarta following a trip to Hanoi, where the company announced plans to increase spending on suppliers in Vietnam, its most important manufacturing hub outside China.

Before the meeting between Widodo and Cook, Apple announced plans to boost its investment in Indonesia and declared its intention to open a new Apple Developer Academy — facilities designed to nurture local talent in the tech sector — in Bali, marking its fourth in the country.

“The meeting with Tim Cook focused on exploring strategic plans, including the opportunity of Apple expanding to Indonesia and further integration into the global supply chain,” Widodo said in a statement.

“I invited Apple to establish an innovation hub with potential universities in Indonesia for human resources development. I also urged Apple to develop a manufacturing facility in the country.”

Although Apple currently lacks a manufacturing facility in Indonesia, it inaugurated its first developer academy there in 2018.

According to Industry Minister Agus Gumiwang Kartasasmita, the new facility raises the company’s total investment in Indonesia to 1.6 trillion rupiah ($98.4 million).

“After this, the Ministry of Industry will conduct a business-matching program. “We already possess a list of the components (that Apple needs) and have already produced mobile components in Indonesia, so perhaps there can be a partnership,” he said.

Apple has primarily centered much of its key manufacturing of iPads, AirPods, and Apple Watches in Vietnam, and more recently, India, as it investigates methods to diversify its supply chains away from China.

Indonesia, with over 270 million people, boasts a young, tech-savvy demographic, with over 100 million individuals under 30.

According to figures from Statista, as of January, Indonesia’s mobile phone market was dominated by Oppo (18 percent) and Samsung (17 percent), with Apple holding an 11.5 percent share.

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

“I thought we had a great conversation and I appreciated the time with him. It was a dialogue about how much potential there is in the country and our commitment to the country.”

Cook later met with Defense Minister Prabowo Subianto, the president-elect, who will assume office from Widodo in October.

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

Also Read

Indonesian president Widodo visits Russia, Ukraine before G20 summit

Indonesia's President Joko Widodo will visit Moscow and Kyiv before the end...