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Apple CEO says it is considering a manufacturing facility in Indonesia
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Apple CEO says it is considering a manufacturing facility in Indonesia
Apr 16, 2024 10:51 PM

JAKARTA, April 17 (Reuters) - Apple Inc ( AAPL ) will

look into building a manufacturing facility in Indonesia, its

CEO said on Wednesday after meeting President Joko Widodo, who

hoped the tech giant would increase its local content by

partnering with domestic firms.

Apple ( AAPL ) chief executive Tim Cook arrived in Jakarta on Tuesday

after visiting Vietnam. He met with Jokowi, as the president is

popularly known, and will inaugurate its fourth developer

academy on the island of Bali.

"We talked about the president's desire to see manufacturing

in the country, and it is something that we will look at," Cook

told reporters after the meeting.

Apple ( AAPL ) has no manufacturing facilities in Indonesia, but

since 2018 it has been setting up app developer academies, which

including the new academy have a total cost of 1.6 trillion

rupiah ($99 million).

Indonesia's industry minister, Agus Gumiwang

Kartasasmita, who also attended the meeting, told reporters that

if Apple ( AAPL ) decided to build manufacturing facility in Indonesia,

it would have the capacity to produce for export.

"We will discuss how Apple's ( AAPL ) facility in Indonesia could

become a global supply chain," he said, adding that the

government said that even if Apple ( AAPL ) didn't built a factory, it

could partner with Indonesian companies to obtain components.

Apple ( AAPL ) has met Indonesia's 35% local content requirement

to sell its products by investing in developer academies, Agus

said, but the government hoped that number could be pushed

higher with a manufacturing facility.

Apple ( AAPL ) has based much of its key manufacturing of iPads,

AirPods and Apple Watches in Vietnam; suppliers for MacBooks are

also investing in the country.

Indonesia has a huge, tech-savvy population, making the

Southeast Asian nation a key target market for tech-related

investment.

($1 = 16,235.0000 rupiah)

(Reporting by Stefanno Sulaiman and Ananda Teresia; Editing by

Kanupriya Kapoor)

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