Apple Inc. (NASDAQ:AAPL) has unveiled plans to invest $1 billion in a manufacturing facility in Indonesia, aimed at producing components for smartphones and other devices. The announcement came from Indonesia’s investment minister on Thursday, following a recent ban on the sales of iPhone 16 in the country.
The ban, imposed in October, was a result of Apple’s non-compliance with Indonesia’s local content requirements, which mandate that at least 40% of parts in phones sold domestically be produced locally. In a move to bolster domestic manufacturing, the Indonesian government has indicated it will increase this local content requirement.
Investment minister Rosan Roeslani informed reporters that while discussions are ongoing, Apple’s investment aligns with the figure he had mentioned earlier in the week. “We will discuss with them some more … our hope is for everything to be announced in the next week after receiving a written commitment from them,” Roeslani stated.
The government had previously turned down Apple’s $100 million investment proposal for an accessory and component plant last week, deeming it insufficient to lift the ban on iPhone 16 sales.
As of now, Apple has not established any manufacturing sites in Indonesia, which has a population of approximately 280 million people. However, since 2018, the tech giant has been running application developer academies in the country.
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