Apple Inc. Plans $1 Billion Investment in Indonesia

Apple Inc. (NASDAQ:AAPL) has announced plans to invest $1 billion in a manufacturing facility in Indonesia, intended for producing components for smartphones and other devices. This announcement was made by Indonesia's investment minister on Thursday, following a recent ban on the sale of the iPhone 16 in the country.

The ban was imposed in October due to Apple's failure to comply with Indonesia's local content requirements, which specify that at least 40% of parts in phones sold domestically must be produced locally. The Indonesian government plans to increase this local content requirement to further promote domestic manufacturing.

Investment Minister Rosan Roeslani mentioned to reporters that discussions are ongoing, and Apple's investment aligns with previously mentioned figures. "We will discuss with them some more … our hope is for everything to be announced in the next week after receiving a written commitment from them," Roeslani stated.

Recently, the government rejected Apple’s $100 million proposal for an accessory and component plant, stating it was insufficient to lift the ban on iPhone 16 sales.

Currently, Apple does not have any manufacturing sites in Indonesia, which has a population of around 280 million. However, the company has been operating application developer academies in the country since 2018.

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