Tech Giant Apple is planning to invest nearly $1 billion in Indonesia’s manufacturing units. They produce the components for the smartphones and the other products. Indonesia’s investment minister shared his opinion on Thursday.
Indonesia prohibited sales of the iPhone 16 in October, claiming Apple had violated regulations requiring at least 40% of domestically sold phones to be built in the country. Additionally, the government said last week that it will raise the demand for local content.
Rosan Roeslani, the minister of investments, told reporters that the specifics of the proposed investment were still being worked out. However, when pressed, he confirmed that it was the $1 billion investment that he had previously mentioned earlier this week.
He also addedÂ
“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,”.
Last week government denied a $100 million investment proposition from Apple to build an addition and the component plant is not enough to change the iPhone 16 banning.
A request for comment from Apple was not immediately answered.
Although it has established application developer academies in Indonesia, a nation of around 280 million people, Apple does not yet have any manufacturing plants there.
Indonesia views such tactics as an effort to satisfy local content standards for older iPhone models.
Businesses usually source parts domestically or form local partnerships to increase the local makeup.
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