JAKARTA (ANN/CHINA DAILY) – Indonesia is anticipating a USD 1 billion investment commitment from tech giant Apple Inc within a week, according to Investment Minister Rosan Roeslani, following a government ban on the sale of iPhone 16 for failing to meet local content requirements.
The Indonesian government halted sales of the iPhone 16, citing regulations requiring at least 40 per cent locally-made components in domestically sold smartphones. A deputy minister announced plans to increase this requirement further.
Speaking at a hearing with lawmakers, Rosan revealed that Indonesia expects significant investments if Apple integrates the country into its supply chain.
“Whoever benefits from the sales must invest here, create jobs here. What’s important is how the global value chain moves here, because once it does, suppliers follow,” Rosan stated, noting that the anticipated investment is part of a first phase.
Apple has not yet commented on the situation.
Previously, Apple proposed a USD100 million investment to build an accessory and component plant in Indonesia to lift the sales ban. However, the government rejected the proposal, arguing it did not align with the principle of fairness.
While Apple currently has no manufacturing facilities in Indonesia, a nation of around 280 million people, the company has operated application developer academies in the country since 2018. The academies are viewed as part of Apple’s strategy to meet local content requirements for older iPhone models.
Companies seeking to meet Indonesia’s local content rules typically achieve compliance through local partnerships or by sourcing components domestically.
The investment proposal from Apple signals a potential boost for Indonesia’s technology sector and its broader goal of integrating into global value chains.
