Indonesia bans iPhone 16 sales, prompting Apple’s new manufacturing plan

Indonesia bans iPhone 16 sales, prompting Apple’s new manufacturing plan.

Indonesia, iPhone 16, Manufacturing, Ban

Apple has announced a $100 million investment plan to establish a factory in Indonesia to manufacture accessories and components. The move aims to resolve the ban on iPhone 16 sales, imposed due to Apple’s failure to meet Indonesia’s regulation requiring smartphones to contain 40% locally produced parts.

The trade ministry has confirmed plans to review Apple’s proposal. Indonesia‘s industry minister has expressed support for the initiative, which would be located in West Java. Since 2018, Apple has invested heavily in local developer academies but lacks manufacturing facilities in the country.

Alphabet also faces similar sales restrictions in Indonesia, underlining the country’s push to enforce local sourcing rules. Apple has yet to comment on the proposed plant or the ongoing regulatory challenges.