Apple Proposes $100 Million Investment for New Plant in Indonesia

Apple proposes a US$100 million investment to build a plant in Indonesia for manufacturing accessories and components. Indonesia banned sales of Apple's iPhone 16 due to non-compliance with local regulations on components. The trade ministry will convene to discuss Apple's proposal for a plant in West Java.

Credit: APPLE

This move by Apple follows Indonesia's decision to prohibit the sale of Apple's iPhone 16 due to the company's non-compliance with local regulations regarding components. Indonesia mandates that smartphones sold within the country must contain a minimum of 40% locally-produced parts.

The trade ministry is scheduled to convene on Thursday to deliberate on Apple's proposed plant in West Java, as stated by spokesperson Febri Hendri Antoni Arif in a released statement.

Arif expressed, "By holding a meeting on Thursday, this means that the industry minister welcomes Apple's investment commitment."

Although Apple currently does not have any manufacturing facilities in Indonesia, the company has been active in the region since 2018, establishing application developer academies at a total cost of 1.6 trillion rupiah (US$99 million).

Apple has not yet responded to requests for confirmation regarding the investment proposal.

Indonesia has also enforced a ban on the sale of smartphones produced by Alphabet's (GOOGL.O) for similar reasons.

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• Apple proposes a US$100 million investment to build a plant in Indonesia for manufacturing accessories and components.

• Indonesia banned sales of Apple's iPhone 16 due to non-compliance with local regulations on components.

• The trade ministry will convene to discuss Apple's proposal for a plant in West Java.

Source: REUTERS