Minister of Industry Agus Gumiwang Kartasasmita explained that business matching is quicker to do as compared to the option of building an Apple factory in Indonesia.
"We already have a list of cell phone components that have been produced in Indonesia that we might be able to match. It is called 'business matching'," he said on Wednesday after Apple CEO Tim Cook met with President Joko Widodo (Jokowi) in Jakarta.
Kartasasmita highlighted President Jokowi's desire for the US company to expand its business in Indonesia.
The president expressed his eagerness for Apple to build a factory in Indonesia, in addition to its existing investment in developing digital talent through the Apple Academy.
The Indonesian government and Apple have agreed that manufacturing development is necessary so that Indonesia becomes a player in Apple's supply chain.
Kartasasmita said that apart from building factories, business matching can be conducted, as Apple can utilize components, such as batteries and cables, already produced in Indonesia.
"There are two options for manufacturing: starting your own factory or utilizing existing producers in Indonesia, with adjustments to meet Apple's specifications," he clarified.
According to Communication and Information Minister Budi Arie Setiadi, of the 360 components needed to produce Apple products, only two are available in Indonesia.
He added that Vietnam currently produces 72 components for Apple.
"President Jokowi inquired about the possibility of increasing the number of components sourced from Indonesia for Apple products," Setiadi remarked.
However, he acknowledged that becoming a major supplier for Apple would be a long-term process. Vietnam has been a supplier for two decades, while Apple has had a presence in China for 30 years.
Related news: Apple welcomes RI's request for its involvement in developing IKN
Related news: Indonesia to receive Microsoft CEO's visit after Apple's Tim Cook
Translator: Mentari Dwi Gayati, Cindy Frishanti Octavia
Editor: Anton Santoso
Copyright © ANTARA 2024
