Apple has plans to invest $1bn in a new manufacturing plant in Indonesia, focusing on producing smartphone components and other products.
Indonesia’s Investment Minister Rosan Roeslani announced the plan, noting that, while details are still under discussion, the investment aligns with the government’s increased local content requirements, reports Reuters.
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Rosan Roeslani was quoted as saying: “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.”
Earlier this week, the Deputy Industry Minister announced that the government intends to raise the local component mandates for smartphones manufactured and sold within its borders, in a move to strengthen the domestic production industry.
In October, Indonesia halted sales of Apple’s iPhone 16 due to its non-compliance with the regulation that requires domestically sold smartphones to include a minimum of 40% locally-produced parts.
The Indonesian government had previously encouraged Apple to boost its investments in the nation.
In November 2024, a $100m proposal from Apple to build an accessory and component plant was rejected for being insufficient to lift the iPhone 16 ban.
Apple had initially proposed a $10m investment, which now has significantly increased to $1bn to address the local component requirement.
Despite Apple not having manufacturing facilities in Indonesia, the tech giant has established application developer academies in the country since 2018.
Apple has established four developer academies in Indonesia to train students and engineers in app development.
During a visit earlier this year by Tim Cook, former Indonesian president Joko Widodo urged the Apple CEO to establish a manufacturing plant. However, Cook reportedly made no commitments.
