iPad and MacBook production could move to Indonesia as early as June

Designed by Apple in California. Made in Indonesia.

Production of the iPad and MacBook could move from China to Batam revealed Indonesia tech news site, detikINET.

The media outlet cites an interview with Abidin Hasibuan, CEO of PT Sat Nusapersada as the source. The company has collaborations with Pegatron, a Taiwanese manufacturing company that makes Apple products including the MacBook, iPad and to a certain extent, the iPhone XR.

“There will be laptop and tablet. I am not allowed to mention the brand but we begin in June. The brand is American and we will supply to America”, Abidin said (quote translated from Indonesian).

Pegatron has made significant investments with its Indonesian partner to start a manufacturing plan in the country.

Does this have anything to do with the ongoing trade-war between China and the U.S.?

Perhaps but not entirely. While it’s easy to assume that moving the manufacturing of Apple products to countries outside of China is the result of the ongoing trade-war with the U.S., a bigger perspective shows that it is simply a matter of managing costs.

China is seeing massive growth in its middle class and along with it a rise in labour cost. The country is no longer a feasible source of cheap labour as its working population move up the value chain. To keep labour costs down, Chinese manufacturing companies like Pegatron looks to other developing countries like India, Vietnam and Indonesia for cheap labour.