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Jeddah - Yasmine El Tohamy - JAKARTA: Indonesian President Joko Widodo on Wednesday met the head of tech giant Apple and urged him to open a manufacturing facility in the country.
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 said it would open a new Apple Developer Academy — facilities designed to nurture local talent in the tech sector — in Bali, 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.”
Apple currently does not have a manufacturing facility in Indonesia but opened its first developer academy there in 2018.
The new facility takes the company’s total investment in Indonesia to 1.6 trillion rupiah ($98.4 million), according to Industry Minister Agus Gumiwang Kartasasmita.
“After this, the Ministry of Industry will conduct a business-matching program. We already have a list of the components (that Apple needs) and mobile components that are already produced in Indonesia, so perhaps there can be a partnership,” he said.
Apple has based much of its key manufacturing of iPads, Airpods and Apple Watches in Vietnam, and more recently India, as it explores ways to diversify its supply chains away from China.
Home to more than 270 million people, Indonesia has a young, tech-savvy population with more than 100 million people aged under 30.
According to figures from Statista, as of January, Apple had an 11.5 percent share of Indonesia’s mobile phone market, behind Oppo (18 percent) and Samsung (17 percent).
“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 really 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 president-elect, Defense Minister Prabowo Subianto, who will take over 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.”
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