Apple to Establish $1 Billion New Facility in Indonesia - Government

Apple Inc. (NASDAQ:AAPL) has announced plans to invest $1 billion in a manufacturing facility aimed at producing components for smartphones and other devices. The announcement was made by Indonesia's Investment Minister on Thursday, following the recent ban on iPhone 16 sales in the country.

The ban, implemented in October, was a result of Apple not complying with Indonesia's local content requirements. These regulations mandate that at least 40% of the parts in phones sold domestically must be produced locally. The Indonesian government, which is taking steps to strengthen domestic manufacturing, stated that it will increase these local content requirements.

Investment Minister Rosan Roeslani informed reporters that discussions are ongoing, but Apple's investment aligns with the figure mentioned earlier in the week. Roeslani stated, "We will have a bit more discussion with them... we hope that after receiving a written commitment, we expect everything to be announced next week."

Last week, the government rejected Apple’s proposal for a $100 million accessory and component facility investment, deeming it insufficient to lift the iPhone 16 sales ban.

Currently, Apple does not have any manufacturing facilities in Indonesia, which has a population of approximately 280 million. However, the tech giant has been operating app developer academies in the country since 2018.