Apple to Build $1 Billion Indonesia Plant
Apple Inc. plans to invest $1 billion in a manufacturing plant in Indonesia to produce components for smartphones and other products. This decision follows Indonesia's ban on iPhone 16 sales in October due to non-compliance with local content regulations, which require at least 40% of parts in domestically sold smartphones to be locally made.
The Indonesian government had previously rejected Apple's $100 million proposal to build an accessory and component plant, deeming it insufficient. Investment Minister Rosan Roeslani expects a written commitment from Apple within the next week.
Apple currently has no manufacturing facilities in Indonesia but has operated application developer academies since 2018 to comply with local content regulations for older iPhone models.
This investment aligns with Indonesia's efforts to boost domestic manufacturing and ensure compliance with local content requirements. The government plans to increase these requirements, aiming to strengthen the local industry.
Apple's substantial investment indicates its commitment to the Indonesian market and its willingness to adapt to local regulations to continue offering its products in the country.
