Kabar Buruk Apple di Indonesia

Raymond Chin2 minutes read

Tim Cook met with President Joko Widodo in Indonesia to discuss investing IDR 1.6 T in building a factory and Apple Store, focusing on the Apple Developer Academy's development to comply with TKDN requirements. However, Apple's minimal investment in Indonesia compared to neighboring countries like Vietnam was due to concerns about local component production, shipping costs, and labor productivity.

Insights

  • Apple's investment in Indonesia was hindered by factors such as low local component production, geographical distance from supply chains, and lower labor productivity, making it less appealing compared to countries like Vietnam and India.
  • Indonesia needs to address issues like sustainability, clean energy, and illegal mining to attract investments from companies like Apple, learning from Vietnam's strategies of offering incentives and showcasing government creativity to become a competitive manufacturing hub in Southeast Asia.

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Recent questions

  • Why did Apple choose to invest in Vietnam and India over Indonesia?

    Apple chose to invest in Vietnam and India over Indonesia due to factors such as cheaper labor costs, growth potential, and tax incentives in those countries. Vietnam's mature manufacturing sector, proximity to China, and tax benefits made it a preferred choice for Apple's production relocation. India's large population and growing middle class also made it an attractive investment option for Apple, with plans to increase production to 25% by 2025. In contrast, Indonesia's lack of readiness, including limited local component production and higher shipping costs, made it less appealing for Apple's investment compared to Vietnam and India.

  • What challenges did Indonesia face in attracting Apple's investment?

    Indonesia faced challenges in attracting Apple's investment due to factors such as low local component production, geographical distance from supply chains, and lower labor productivity. The country's readiness for Apple's investment was questioned, as it lacked the necessary conditions compared to neighboring countries like Vietnam and India. Additionally, incentives like tax breaks and government support played a significant role in Apple's decision to invest in Vietnam and India over Indonesia.

  • What factors influenced Apple's shift of production from China to Vietnam and India?

    Apple's shift of production from China to Vietnam and India was influenced by factors such as cheaper labor costs, growth potential, and tax incentives in those countries. Vietnam's mature manufacturing sector, proximity to China, and tax benefits made it an attractive choice for Apple's production relocation. India's large population and growing middle class also played a role in Apple's decision to increase production in the country.

  • How did Indonesia's middle class growth impact Apple's investment decisions?

    Indonesia's middle class growth impacted Apple's investment decisions by gradually allowing citizens to consider purchasing Apple products. However, the country still lacked the necessary conditions to attract Apple to open a factory and create jobs. Indonesia should learn from Vietnam's strategies, including offering incentives and showcasing government creativity to entice global brands. To progress, Indonesia needs to address issues like sustainability, clean energy, and illegal mining, which have deterred Apple from investing in the country.

  • What should Indonesia focus on to attract investments from companies like Apple?

    Indonesia should focus on addressing various factors to attract investments from companies like Apple, such as becoming more than just a consumer country and aiming to compete as a popular manufacturing hub in Southeast Asia. Learning from Vietnam's strategies, including offering incentives and showcasing government creativity, can help Indonesia attract global brands. Addressing issues like sustainability, clean energy, and illegal mining is crucial for Indonesia to become an attractive investment destination for companies like Apple.

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Summary

00:00

Apple's Investment Shifts to Vietnam and India

  • Tim Cook, Apple CEO, met with President Joko Widodo in Indonesia to discuss an investment of IDR 1.6 T for building a factory and Apple Store.
  • The investment was focused on the development of the Apple Developer Academy, with 4 sites planned, aiming to comply with TKDN requirements.
  • Apple's investment in Indonesia was minimal compared to neighboring countries like Vietnam, where they invested IDR 200 T for a manufacturing center.
  • Indonesia's readiness for Apple's investment was questioned due to low local component production, geographical distance from supply chains, and lower labor productivity.
  • Apple's shift of production from China to Vietnam and India was influenced by cheaper labor costs, growth potential, and tax incentives in those countries.
  • India's large population and growing middle class made it an attractive investment option for Apple, with plans to increase production to 25% by 2025.
  • Vietnam's mature manufacturing sector, proximity to China, and tax benefits made it a preferred choice for Apple's production relocation.
  • Indonesia's lack of readiness, including limited local component production and higher shipping costs, made it less appealing for Apple's investment compared to Vietnam and India.
  • Incentives like tax breaks and government support played a significant role in Apple's decision to invest in Vietnam and India over Indonesia.
  • The overall analysis suggests that Indonesia, as a consumer country, needs to address various factors to attract investments from companies like Apple.

11:08

Indonesia's Middle Class Growth and Apple's Potential

  • Indonesia's middle class is gradually growing, allowing citizens to consider purchasing Apple products, but the country still lacks the necessary conditions to attract Apple to open a factory and create jobs. Indonesia should learn from Vietnam's strategies, including offering incentives and showcasing government creativity to entice global brands. To progress, Indonesia needs to address issues like sustainability, clean energy, and illegal mining, which have deterred Apple from investing in the country. The focus should be on becoming more than just a consumer market, aiming to compete as a popular manufacturing hub in Southeast Asia.
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