Apple Inc. is planning to invest $1 billion in a new manufacturing plant in Indonesia, aimed at producing smartphone components. This initiative comes in response to Indonesia’s regulation that mandates 40% of smartphone components be locally sourced. The investment follows a sales ban on the iPhone 16 in the country due to Apple’s non-compliance with the local sourcing requirement, which prompted the company to take steps to align with the policy.
This substantial investment highlights Apple’s commitment to expanding its operations in Southeast Asia’s largest economy. By setting up the plant, Apple not only aims to comply with Indonesian regulations but also strengthens its presence in a key regional market, signaling its long-term strategy to enhance local production capabilities.