Apple Explores Manufacturing Expansion in Indonesia

While lacking manufacturing facilities in Indonesia, Apple has been investing in app developer academies since 2018, with a total cost of 1.6 trillion rupiah ($99 million), signaling its interest in the Indonesian market.

During a recent meeting, Indonesia’s industry minister, Agus Gumiwang Kartasasmita, expressed optimism about the possibility of Apple establishing manufacturing facilities in Indonesia. Such facilities could cater to global export markets, enhancing Indonesia’s role in Apple’s supply chain.

Government Support:

The Indonesian government is open to discussing how Apple’s presence in Indonesia could contribute to a global supply chain. Even without a factory, partnerships with Indonesian companies could facilitate the procurement of components for Apple products.

Apple has met Indonesia’s 35% requirement for local content by investing in developer academies. However, the government aims to increase this figure by establishing manufacturing facilities.

Current Manufacturing Landscape:

Apple primarily conducts key manufacturing operations for iPads, AirPods, and Apple Watches in Vietnam. Additionally, suppliers for MacBooks are investing in the country.

Indonesia boasts a sizable and tech-savvy population, positioning it as a significant target market for tech-related investments in Southeast Asia.