Indonesian Investment Minister Rosan Roeslani said the country expects $1 billion in investment from Apple. It is important to note that Indonesia has banned the sale of the iPhone 16 in the country, as smartphones must contain at least 40 percent domestically produced components. Apple cannot meet this requirement because it does not have manufacturing facilities in Indonesia.
Roeslani also said that Apple should invest more in the future if it wants to make Indonesia part of its supply chain. He also mentioned how an Apple factory in Indonesia could create jobs.
Previously, Apple had proposed investing $100 million to build an accessories and components factory in Indonesia. The Indonesian government rejected the proposal, saying it did not meet the “principle of fairness.”
Apple does not yet have a local factory that meets the 40% local content requirement, but it does have an application development academy in Indonesia. Therefore, there was a possibility that older iPhone models would be sold in the country. It is still being sold, and there is no indication that Indonesia is currently planning to ban it.
Reuters reached out to Apple for comment on the situation, but has not yet received a response.
