Apple’s Cook Weighs Indonesia Production As Region Gains Clout

(Bloomberg) -- Apple Inc. is weighing the possibility of making some of its gadgets in Indonesia, as the iPhone maker explores production bases beyond its longtime stronghold of China.

Chief Executive Officer Tim Cook, responding to a request from Indonesia President Joko Widodo Wednesday, said Apple will look into the feasibility of local manufacturing. His comments came a day after the CEO made a similar pledge to Vietnam, already a growing source of Apple devices including AirPods.

“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 in Jakarta after meeting with Widodo and other government officials. “The investment ability in Indonesia is endless.”

Apple is diversifying its manufacturing beyond China to minimize geopolitical risks as tensions rise between the world’s two biggest superpowers. It’s already increased output in countries such as India and Vietnam, and production in Indonesia could help it better tap a relatively fast-growing Southeast Asian market with more than 650 million consumers.

The US tech company opened an Apple Developer Academy on the resort island of Bali during Cook’s visit — its fourth in Indonesia — as part of an effort to meet requirements for locally produced components and software in smartphones and other goods. Apple has invested 1.6 trillion rupiah ($98.5 million) in total on the four academies, according to Information and Communication Technology Minister Budi Arie Setiadi, who also attended the meeting.

President Jokowi — as he’s popularly known — is seeking to shift global manufacturing supply chains into Southeast Asia’s largest economy to boost growth. The government has secured investments from automakers Hyundai Motor Co. and BYD Co. Jokowi met Tesla Inc. CEO Elon Musk in 2022 and may meet Microsoft Corp. CEO Satya Nadella at the end of this month.

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