By Elias Al Helou
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Apple considers building manufacturing facility in Indonesia amid push to increase local production

The U.S. company also plans to inaugurate Apple's fourth developer academy on the island of Bali
Apple considers building manufacturing facility in Indonesia amid push to increase local production
During Apple's CEO Tim Cook meeting with Indonesian President Joko Widodo.

Apple is considering building a manufacturing facility in Indonesia, the company’s CEO Tim Cook announced after meeting with Indonesian President Joko Widodo. The two leaders discussed Widodo’s desire to see more manufacturing take place within the country, and Cook stated that this is something Apple will look into. 

Cook arrived in Jakarta on Tuesday after visiting Vietnam. During his time in Indonesia, he also plans to inaugurate Apple’s fourth developer academy on the island of Bali. These developer academies have cost a total of 1.6 trillion rupiah ($99 million) since Apple first started setting them up in the country in 2018.

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Indonesia’s Industry Minister Agus Gumiwang Kartasasmita, who attended the meeting with Cook and Widodo, said that if Apple does decide to build a manufacturing facility in Indonesia, it could be used for export production. “We will discuss how Apple’s facility in Indonesia could become a global supply chain,” Kartasasmita told reporters.

Even if Apple does not build its own factory, the government hopes the company will partner with Indonesian firms to increase the local content of Apple’s products sold in the country. Currently, Apple meets Indonesia’s 35 percent local content requirement through its investments in the developer academies, but the government would like to see that percentage rise higher.

Apple has focused much of its key manufacturing in Vietnam in recent years, producing iPads, AirPods and Apple Watches there. Suppliers for MacBooks have also been investing in facilities in Vietnam. Indonesia, with its large and tech-savvy population, represents an attractive target market for technology companies looking to expand their presence in Southeast Asia.

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