Apple Eyes Indonesia for New Production Line to Reduce Reliance on China

Apple is looking to establish a new production line in Indonesia as part of its strategy to reduce reliance on China and tap into new opportunities in Southeast Asia.

Apple CEO Tim Cook announced the company’s plans to explore manufacturing in Indonesia following a meeting with Indonesian President Joko Widodo. During the meeting, Cook emphasized the shared interest in boosting domestic production to support Indonesia’s economic growth. He told reporters, “We discussed the President’s desire to have a manufacturing line here, and we’ll be looking into that very carefully.”

Indonesia has been actively courting foreign companies to set up manufacturing facilities in the country as part of its economic development strategy. Widodo envisions transforming the country into a new hub for international businesses, presenting an opportune moment for Apple as the iPhone maker seeks to diversify its supply chain away from China.

According to MacRumors, Apple is driven to diversify its supply chain due to geopolitical tensions, economic downturns, and other risks such as COVID-related production disruptions in China. The company has already established production lines in Vietnam and India and is now expanding its manufacturing footprint in Southeast Asia.

Commenting on the potential for Apple product manufacturing in Indonesia, Cook stated, “I think the investment potential in Indonesia is unlimited. There are so many great places to invest, and we’re investing and we believe in this country.”

Cook’s visit to Indonesia comes on the heels of a recent trip to Vietnam, where he met with Prime Minister Pham Minh Chinh.

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