Global technology company Apple has sent a $100m investment proposal to Indonesia to build a manufacturing plant for accessories and components. This is a tenfold increase of Apple’s original proposal of $10m.
The updated proposal is a response to Indonesia’s decision to prohibit the sale of Apple’s iPhone 16 due to the company’s noncompliance with local regulations. To sell certain smartphones in Indonesia, the law requires for at least 40% of the phone’s components to be produced locally.
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The country’s trade ministry will discuss the proposal for a plant in West Java on Thursday, according to a statement by the ministry’s spokesperson Febri Hendri Antoni Arif.
“By holding a meeting on Thursday, this means that the industry minister welcomes Apple’s investment commitment,” he said.
Apple has no manufacturing facilities in Indonesia but, since 2018, has set up application developer academies with a combined cost of 1.6 trillion rupiah ($99 million).
Apple did not immediately respond to a request for confirmation.
Indonesia has also banned sales of smartphones made by Google owner Alphabet for a similar reason.
Earlier this year, Apple similarly committed to investing more in its Vietnamese supply chain.
