Indonesia mandates that smartphones sold domestically must contain at least 40% locally-made parts. Credit: Ringo Chiu/Shutterstock.

Apple has proposed a $100m investment to establish a manufacturing plant in Indonesia, focusing on accessories and components, Reuters reports, citing the industry ministry.

This move follows the South-East Asian country’s recent ban on iPhone 16 sales due to non-compliance with local component regulations.

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The proposal includes building a facility in Bandung, West Java, as stated by Indonesia’s industry ministry.

Indonesia mandates that smartphones sold domestically must contain at least 40% locally-made parts.

Apple’s initial investment offer was $10m, but the revised proposal aims to address the component requirement.

The trade ministry will discuss the proposal today, according to spokesperson Febri Hendri Antoni Arif.

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The news publication quoted trade ministry spokesperson Febri Hendri Antoni Arif as saying: “By holding a meeting on Thursday, this means that the industry minister welcomes Apple’s investment commitment.”

Apple currently lacks manufacturing facilities in Indonesia, although it has invested in application developer academies since 2018.

The Indonesian government has previously urged Apple to increase its investment in the country.

Apple has established four developer academies in Indonesia to train students and engineers in app development, The Financial Times reported.

During Apple CEO Tim Cook’s visit earlier this year, former Indonesian president Joko Widodo urged Cook to set up a manufacturing plant, but no commitments were made.

Earlier this month, Russia’s internet giant Yandex announced its plans to invest in Indonesia’s artificial intelligence (AI) ecosystem.