$1B Apple investment into Indonesia on the horizon
In a bid to secure a $1 billion investment from Apple, Indonesia is enforcing stricter local content rules, highlighting its ambition to play a larger role in the global tech supply chain.
Indonesia expects a $1b investment from Apple within a week following its decision to ban sales of the iPhone 16 for not meeting local content requirements. The nation mandates that devices sold domestically include at least 40% locally-made components, a figure Apple has yet to achieve. The government has hinted at plans to further raise this threshold.
Investment Minister Rosan Roeslani stated that Apple’s involvement in Indonesia’s supply chain could unlock more investment opportunities, emphasising the importance of job creation and integrating the country into global value chains. A previous $100 million proposal from Apple to build an accessory plant was rejected for not meeting fairness principles.
Apple has no manufacturing facilities in Indonesia but has supported local application developer academies since 2018. While this initiative allowed older iPhone models to meet requirements, the government insists on more substantial commitments for newer devices. The upcoming investment could mark a first phase in Apple’s deeper integration into Indonesia’s economy, a nation of 280 million people eager to secure its place in the global tech industry.
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