Apple to open $1Bn factory in Indonesia to lift iPhone ban

Details: Manny Pham; Category: Vendors; 06 December 2024; 60006 views

Apple plans to open its first manufacturing facility in Indonesia, according to the Minister of Investment, marking a move that could lift the ban on the sale of the iPhone 16.

Reuters reported that Investment Minister Rosan Roeslani stated details of the planned US$1 billion factory investment are still being finalised. Earlier in the week, the government announced it was expecting a billion-dollar commitment from Apple.

Indonesia banned the official distribution of the iPhone 16 because Apple did not comply with a regulation requiring phones sold in the country to include 40% locally manufactured parts. The government has since indicated that this requirement will be increased further.

Apple attempted to counter the ban by proposing a US$100 million investment to build an accessory and component plant, but this offer was insufficient to reverse the decision.

Although Apple does not currently have manufacturing facilities in Indonesia, it has established developer academies in the country since 2018.

Companies selling products in Indonesia typically comply with the local manufacturing law through partnerships or by sourcing parts domestically.