Today marked a momentous occasion as Apple’s CEO, Tim Cook, paid a visit to Indonesia, to the State Palace for a crucial meeting with President Joko Widodo or Jokowi. The meeting, held on Wednesday (17/4/2024), revolved around discussions regarding potential investments by Apple in Indonesia.
As per statements from Minister of Communication and Information, Budi Arie Setiadi, the hour-long discussion covered several key points, notably focusing on the prospect of manufacturing Apple products within Indonesia’s borders.
Minister Budi Arie Setiadi highlighted the importance of localizing Apple’s manufacturing processes, emphasizing the potential for value addition to Indonesia’s economy. He stated, “One of the key points discussed was the possibility of manufacturing Apple products in Indonesia. With an open market and a high demand for Apple products, it’s essential to explore opportunities for local production.”
Prior to the meeting at the State Palace, Minister of Industry Agus Gumiwang affirmed that plans to establish Apple manufacturing facilities in Indonesia were already in motion. The initial steps involve utilizing locally producible components.
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“After this, the Ministry of Industry will facilitate a business matching process. We have compiled a list of components that are currently available for production in Indonesia,” explained Minister Agus.
He further elaborated on the potential for synergy between Indonesian-produced components and Apple’s requirements, stating, “This process of business matching accelerates the timeline, as the necessary components are readily available. Adjustments may be made to specifications, and discussions regarding the establishment of manufacturing facilities will follow suit. This marks the beginning of expanding Apple’s presence in Indonesia.”
Indonesia aims to emulate the success of Vietnam and China in becoming integral components of the global technology supply chain. Minister Budi Arie Setiadi emphasized the need for Indonesia to increase its contribution to Apple’s supply chain, citing the disparity in component sourcing between Indonesia and other countries.
“Out of 360 components used in mobile devices, only two originate from Indonesia. This pales in comparison to Vietnam’s 72 components,” remarked Minister Budi Arie.
President Joko Widodo’s vision extends beyond mere manufacturing ventures. He expressed interest in broadening Apple’s involvement in Indonesia beyond the Apple Developer Academy. Currently operational in Batam, Surabaya, and Tangsel, with a total investment of Rp 1.2 trillion, the Apple Developer Academy aims to nurture local tech talent.
Additionally, plans for the establishment of an Apple Developer Academy in Bali, bringing Apple’s total investment to Rp 1.6 trillion, were unveiled. President Jokowi proposed collaboration between Apple and top Indonesian universities to establish innovation centers, a suggestion met with enthusiasm by Mr. Cook.
Furthermore, Minister Budi Arie revealed President Jokowi’s invitation to Apple to participate in the development of smart cities in Indonesia’s Nusantara Capital City (IKN), underscoring the government’s commitment to fostering innovation and technology integration in urban development.
In sum, Apple CEO Tim Cook recently met with President Jokowi, sparking speculation about potential large-scale investments in Indonesia. The meeting, which covered various topics including the prospect of manufacturing Apple products locally, signifies a significant development in Indonesia’s tech landscape.
