Pegatron reportedly to begin Apple MacBook and iPad assembly in Indonesia next month

“Pegatron reportedly will start assembling Apple’s MacBook and iPad devices via PT Sat Nusapersada, a local manufacturer in Batam, Indonesia in June, according to an Indonesian-language report from DetikInet,” Judy Lin and Joseph Tsai report for DigiTimes.

“Abidin Hasibuan, CEO of PT Sat Nusapersada, did not deny that the company would start assembling products in June,” Lin and Tsai report. “The CEO did not specify the client or clients it would be working for, but said the products would be shipped to the US, according to the report.”

Lin and Tsai report, “Since Pegatron has recently established a partnership with the manufacturer, the reports said it believes the orders are most likely from Apple.”

Read more in the full article here.

MacDailyNews Take: Diversification of manufacturing and assembly (i.e. not centralized mainly in China) is a key for Apple’s (and AAPL’s) future stability.

Related articles:
Gene Munster: China tariffs on Apple products unlikely – May 23, 2019
President Trump’s Huawei ban creates concern over Apple’s iPhone business in China – May 22, 2019
The media is lying to you about President Trump’s China tariffs – May 15, 2019
Analyst: Apple investors ‘overreacting’ to U.S.-China trade war and Supreme Court App Store ruling – May 14, 2019
Apple, Deere & Co, retail in focus as U.S. releases fresh tariff list – May 14, 2019
Gene Munster: Apple likely to be spared from China tariffs – May 10, 2019
Apple not yet hurt by China tariffs, likely to simply absorb the added cost – May 10, 2019


  1. About time! Thank goodness. They need diversified manufacturing sources. But that HAS to include some mac/ipad/iphone manufacturing in the US too.

    Cook is an outright failure at basic tenets of operations in not having diversified more and earlier.

    1. “But that HAS to include some mac/ipad/iphone manufacturing in the US too.”
      No it doesn’t. Unless Foxconn decides to open and staff a factory where such things can be made. But Wisconsin doesn’t seem to be going too well 🙂

  2. Indonesia? In which US state is that located?

    The sad reality is that Trump’s flailing isn’t incentivizing US corporations to move manufacturing back into the US. Even at negative tax rates and lavish incentives offered by states and cities, corporations have determined it’s more profitable in the short term to abuse cheap labor in nations that don’t care about environment or social justice. Can anyone name a major corporate manufacturing facility built in the US in many years without piles of corporate welfare? Cry how bad socialism is all you want, the captains of industry aren’t government bureaucrats. The people’s representatives are just puppets. Corporate executives call all the shots. They long ago sold out American labor to enrich themselves in the short term. Oops, sorry about that predictable IP theft.

    With all that money he saves by being an economic traitor, Cook can globe-trot around telling everyone about being a responsible unelected oligarch with a conscience. Just the kind of buddy Trump likes when he’s not riling up his base at anti-trade pro-isolationism rallies.

    1. Do you really believe Merika cares about “social justice”?

      “Corporate executives call all the shots.” They are just “puppets” like politicians. The Military Industrial Complex-Wall Street controls this country.

  3. The USA should be pursuing higher value manufacturing, not assembly work of pre-manufactured components.
    These kinds of plants are great opportunities for developing nations with increasing levels of education to improve their skill and technical levels while providing non-manual labour roles as basic agriculture becomes increasingly automated.
    As the world’s most populated Muslim nation, that has a democratically elected government dedicated to avoiding the lurch towards extreme Islamist ideology, Indonesia should be supported and congratulated for the great developmental strides it has taken.
    Further enmeshing them in the world’s high tech supply chain should be seen as a good thing.

    1. Agreed on most of your points. The one I’ll take minor exception to is the first one, namely to pursue higher value manufacturing … as it implies that ‘lesser’ forms aren’t to also be pursued too.

      The basic reason why is because all populations are going to have a gradient in talent/skills, which means that there’s always going to be some portion where their aptitude is limit to some degree, and they merit having job opportunities as well. Granted, these may not necessarily be of equal interest to domestic manufacturers because of the ‘cheap foreign labor’ paradigm, but there’s always ways through policy by which the playing field can be “leveled” so that this portion of the workforce can be afforded opportunities to work, rather than to be inherently and chronically unemployable.

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