Apple is planning to invest US$1 billion in a new manufacturing plant in Indonesia, according to its investment minister Rosan Roeslani.

The facility will produce components for smartphones and other products.

The announcement follows Indonesia’s October ban on iPhone 16 sales due to Apple’s non-compliance with a regulation that requires 40% of phone parts to be locally made.

The government plans to increase this local content requirement, while the minister said discussions with Apple are still in progress.

A formal announcement is anticipated next week following a written commitment.

Earlier, the government rejected a $100 million investment offer from Apple, deeming it insufficient to lift the iPhone 16 ban.

Apple has no manufacturing operations in Indonesia but has run application developer academies there since 2018.

Apple has not provided a comment on the investment discussions.

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