After the iPhone 16 is banned from sale, Apple plans to invest $100 million to build a factory in Indonesia

Zhitong
2024.11.20 13:22
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The Indonesian Ministry of Industry stated on Wednesday that tech giant Apple has proposed a $100 million investment plan to establish a factory in Indonesia for the production of accessories and components. This proposal came after Indonesia banned Apple from selling the iPhone 16 due to the company's failure to meet local regulations regarding components. Indonesia requires that certain smartphones sold domestically contain at least 40% locally manufactured components. Febri Hendri Antoni Arif, a spokesperson for the Ministry of Industry, stated that a meeting will be held on Thursday to discuss Apple's proposal to build a factory in West Java. He said, "The meeting on Thursday indicates that the Minister of Industry welcomes Apple's investment commitment." Apple does not have production facilities in Indonesia but has established an app development academy since 2018, with a total cost of IDR 1.6 trillion (approximately $99 million). For similar reasons, Indonesia has also banned the sale of smartphones produced by Alphabet. It is reported that competitor Samsung Electronics has already set up a factory in Indonesia to comply with the country's localization rate regulations

According to the Zhitong Finance APP, the Indonesian Ministry of Industry stated on Wednesday that technology giant Apple (AAPL.US) has proposed a $100 million investment plan to establish a factory in Indonesia for the production of accessories and components.

This proposal was made after Indonesia banned Apple from selling the iPhone 16 due to the company's failure to meet local component regulations. Indonesia requires that certain smartphones sold domestically contain at least 40% locally manufactured components.

Febri Hendri Antoni Arif, a spokesperson for the Indonesian Ministry of Industry, stated that the department will hold a meeting on Thursday to discuss Apple's proposal to build a factory in West Java.

He said, "The meeting on Thursday indicates that the Minister of Industry welcomes Apple's investment commitment."

Apple does not have production facilities in Indonesia but has established an app development academy since 2018, with a total cost of IDR 1.6 trillion (approximately $99 million).

For similar reasons, Indonesia has also banned the sale of smartphones produced by Alphabet (GOOGL.US).

It is reported that competitor Samsung Electronics has already set up a factory in Indonesia to comply with the country's localization rate regulations