In the kinematic equation x = x0 + v0 * t + 0.5 * a * t^2, x0 represents the initial position of an object and can take any value based on the chosen coordinate system. An example provided involves dropping an object from a height of 5 meters, where x0 equals 5 meters and the initial velocity v0 is zero. The discussion highlights that both x and x0 can be non-zero in horizontal motion by selecting an appropriate origin, such as starting a particle 5 meters from the origin with an initial velocity of 5 meters per second. Ultimately, the value of x0 depends on the reference point chosen for the coordinate system. Understanding these concepts is crucial for solving kinematic problems effectively.