Indonesian officials are set to meet with Apple (AAPL.US) to discuss a potential $1 billion investment, which could have a significant impact on the launch of the iPhone 16 in Indonesia.

Indonesia's industry ministry is scheduled to hold a crucial meeting with Apple (AAPL.US) on Tuesday, focusing on the company's investment plans in Indonesia, which is seen as a necessary step for Apple to launch its new iPhone 16 in the Indonesian market.

Last year, Apple faced a ban on its iPhone 16 in Indonesia due to its failure to meet the government's requirement that smartphones contain at least 40% local components. Although Apple has not yet established production factories in the country with a population of 280 million, it has been setting up application developer academies in Indonesia since 2018, showing its long-term development in the region.

Febri Hendri, a spokesperson for the industry ministry, revealed that Apple executives will arrive at the ministry to negotiate in-depth on Apple's failure to fulfill its investment commitments and its latest proposals.

It is noteworthy that the Indonesian government requires Apple to make a new investment commitment every three years, and its previous commitment of US$10 million has expired in 2023. To meet the localisation requirements, the Indonesian side is actively seeking Apple's new investment commitment in the period of 2024-2026.

According to the Indonesian government, Apple plans to invest US$1 billion in Indonesia to build a factory focused on the production of smartphone and other electronic components, although the specific details of the project are still under discussion.

As of the time of writing, Apple has not made any official comments on the meeting or related investment plans. The meeting not only concerns Apple's future layout in the Indonesian market but also a major initiative by the Indonesian government to promote the upgrading of local manufacturing and attract foreign investment.