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Apple has proposed spending $100 million on an Indonesian manufacturing facility, after the Southeast Asian country’s government banned sales of its latest iPhone over local investment levels.
The US company has offered to build an accessories and components factory in Bandung, West Java, the Industry Ministry said in a statement. Apple initially offered a $10 million investment.
Indonesia banned iPhone 16 models last month, citing Apple’s failure to meet 40 percent local content requirements in handsets and tablets. Google’s Pixel phones were also banned for not meeting this rule.
The ministry said it “welcomed Apple’s investment commitment” and was scheduled to hold a meeting on Thursday to discuss the proposal. Apple did not immediately respond to a request for comment.
Indonesia has long used trade regulations for coastal manufacturing to attract foreign investment and promote local industries. Some have criticized the rules as protectionist, and the local content requirement — which varies across industries and calls for a certain percentage of goods to be sourced within the country — has deterred some investors. .
However, the ban on Apple – which came into effect shortly after Prabowo Subianto took office as Indonesia’s president – appears to be having an effect.
The world’s fourth most populous country is potentially a huge market for Apple products. The Ministry of Industry has said that the number of active mobile phones in Indonesia totals 354 million – more than a population of about 280 million.
In October, Jakarta said Apple fell short of its original commitment to invest Rp1.71tn ($107mn) in the country and had invested only Rp1.48tn so far.
Indonesia has previously called for more investment from Apple, which has no manufacturing facilities in the country.
The company has set up four developer academies in Indonesia to train students and engineers to develop apps, but the government said that was not enough.
When Apple Chief Executive Tim Cook visited Jakarta earlier this year, then-President Joko Widodo asked him to set up a manufacturing plant, although Cook made no promises.
