Apple Plans $1 Billion Manufacturing Investment in Indonesia
Apple plans to invest $1 billion in a new manufacturing facility in Indonesia, according to the country's investment minister Rosan Roeslani. The planned investment comes after Indonesia banned sales of the iPhone 16 in October due to local content requirements.
The Indonesian government currently mandates that phones sold in the domestic market must contain at least 40% locally manufactured components. The tech giant's Apple, which has no manufacturing presence in the country of 280 million people, has previously operated developer academies there since 2018.
Last week, Indonesian officials rejected a smaller $100 million investment proposal from Apple to build an accessory and component plant, deeming it insufficient to reverse the iPhone sales ban. The new $1 billion commitment represents a major escalation in Apple's proposed investment.
"We will discuss with them some more details and hope to announce everything next week after receiving their written commitment," Minister Roeslani told reporters on Thursday. The specific details of the planned manufacturing facility are still being finalized between the two parties.
While Apple has not yet publicly commented on the investment plans, the move would mark the company's first manufacturing presence in Indonesia. Companies typically meet local content requirements through domestic partnerships or by sourcing components from local suppliers.
The tech giant's previous engagement in Indonesia has largely centered around developer education programs, which the government had considered as partial fulfillment of local content rules for older iPhone models. This new manufacturing investment, if finalized, would represent a major shift in Apple's approach to one of Southeast Asia's largest consumer markets.