Taiwanese Apple supplier, Compal Electronics look Indonesia become its new investment destination. Currently, the manufacturer of sophisticated electronic products such as iPad, iPhone, and Apple Watch is looking for a new location the Southeast Asian (ASEAN) region for production.
The China – United States trade wars have made Apple ask its large suppliers to move around 30% of its production capacity from China to the Southeast Asia region. That was a step Apple to restructure its supply network. The manufacturer claimed it was too risky to fully rely on their manufacturing processes in China.
In addition to Compal, a number of key companies that assemble iPhones, such as Foxconn, Pegatron Corp., Wistron Corp., Quanta Computer (MacBook maker), Inventec Corp (maker of AirPods), Luxshare-ICT, and Goertek, reportedly was in the evaluation process to make production outside China.
Some countries that have been considered for the transfer are Indonesia, Mexico, India, Vietnam, and Malaysia. The proof was last May, Apple suppliers Pegatron Corp, announced that they would invest up to US$ 1.04 billion to build a factory on Batam Island. A new factory to produce chips for Apple smartphones in this country.
The Taiwanese manufacturer made an appointment in a letter signed to the Indonesian government, which said that the chip would be produced in partnership with Indonesian electronics company Sat Nusapersada (PTSN), according to the deputy minister of industry Warsito Ignatius.
Therefore, said Hartarto, companies that want to invest in Indonesia require the government’s partisanship to investors. For this reason, the government is currently preparing regulations related to International Mobile Equipment Identity (IMEI). This rule is a form of government protection for industry.
Meanwhile, the protection of the telecommunications-based electronics industry is still minimal because the import duty is still 0 percent. The IMEI is driving the industry in this country to grow. Because compared to other sectors the electronic foreign exchange is negative and wants to turn the import industry into a domestic-based industry.