Apple (AAPL.US) plans to invest $100 million in Indonesia to build a factory after the ban on iPhone 16

Market IntelWednesday, Nov 20, 2024 8:30 am ET

1min read

Indonesia's industry ministry said on Wednesday that Apple (AAPL.US) has proposed a $100 million investment plan to build a factory in Indonesia to produce accessories and components.The proposal comes after Indonesia banned Apple from selling the iPhone 16, as the company failed to meet local content requirements. Indonesia requires that certain smartphones sold locally contain at least 40% locally manufactured components.The ministry's spokesman, Febri Hendri Antoni Arif, said it would hold a meeting on Thursday to discuss Apple's proposed factory in West Java.He said: "The meeting on Thursday means the minister welcomes Apple's investment commitment."Apple does not have manufacturing facilities in Indonesia but has established an academy for app development at a total cost of 16 trillion rupiah ($9900,000).Indonesia also banned the sale of smartphones manufactured by Alphabet (GOOGL.US) for similar reasons.Rivals such as Samsung have already established factories in Indonesia to meet the country's local content regulations.

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