US-based technology giant Apple is planning to make an investment of $1 billion in a manufacturing plant in Indonesia to make components for smartphones and other products, Indonesia’s investment minister said on Thursday.
In October, Indonesia banned sales of the iPhone 16 because it said Apple had not adhered to rules that require phones sold domestically to have at least 40 percent locally made parts. And this week, the government said it would increase the local content requirement, Reuters news report said.
Investment minister Rosan Roeslani told reporters that details of the planned investment were still being ironed out, but when asked confirmed it was the expected $1 billion investment he had flagged earlier this week.
Last week, the government had rejected a $100 million investment proposal from Apple to build an accessory and component plant as not enough to reverse the iPhone 16 ban.
Apple currently has no manufacturing facilities in Indonesia, a country of about 280 million people, but since 2018 it has set up application developer academies.
Indonesia considers that strategy an attempt to meet local content requirements for the sale of older iPhone models.
