Apple plans a significant investment of $1 billion in a new manufacturing facility in Indonesia. This plant will focus on producing components for smartphones and other Apple products, according to Indonesia’s investment minister, Rosan Roeslani.
This announcement comes after Indonesia banned sales of the iPhone 16 in October. The ban stemmed from Apple’s non-compliance with regulations mandating at least 40% locally-sourced components for phones sold within the country. Furthermore, the Indonesian government recently indicated its intention to increase this local content requirement.
While specific details of the investment are still under negotiation, Minister Roeslani confirmed the anticipated $1 billion figure. He expressed hopes for a formal announcement in the following week, pending a written commitment from Apple. This proposed investment follows a previously rejected $100 million proposal from Apple for an accessory and component plant, deemed insufficient to overturn the iPhone 16 sales ban.
Currently, Apple has no manufacturing presence in Indonesia, a nation with a population of approximately 280 million. However, the company has established application developer academies in the country since 2018. This strategy has been viewed by the Indonesian government as an effort to fulfill local content requirements for older iPhone models. Typically, companies enhance their local content contributions through partnerships with local businesses or by sourcing components domestically.
This substantial investment signals Apple’s commitment to expanding its manufacturing footprint and adhering to local content regulations in Indonesia. This move could pave the way for the reintroduction of the iPhone 16 to the Indonesian market and foster further growth within the country’s tech sector.
