JAKARTA (Reuters) – Tech giant Apple has made a $100 million investment proposal to Indonesia to build a plant to manufacture accessories and components, the industry ministry said on Wednesday.
The proposal comes after Indonesia banned sales of Apple’s iPhone 16 over the firm’s failure to meet local rules on components. Indonesia requires certain smartphones sold domestically to comprise at least 40% locally-made parts.
The trade ministry will meet on Thursday to discuss Apple’s proposed West Java plant, its spokesperson Febri Hendri Antoni Arif said in a statement.
“By holding a meeting on Thursday, this means that the industry minister welcomes Apple’s investment commitment,” he said.
Apple has no manufacturing facilities in Indonesia, but has since 2018 set up application developer academies with a combined cost of 1.6 trillion rupiah ($99 million).
Apple did not immediately respond to a request for confirmation.
Indonesia has also banned sales of smartphones made by Alphabet’s for a similar reason.
(Reporting by Stefanno Sulaiman and Ananda Teresia; Editing by Martin Petty)
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