Apple is investing $10 million in a new factory in Indonesia to lift a recent sales ban on its iPhone 16 and Apple Watch 10 series. The ban was imposed due to Apple’s failure to meet Indonesia's requirement for 40% local content in devices sold within the country.
To address this, Apple has partnered with Yageo Corporation, a local supplier, to fund a modern production facility in Bandung, Indonesia, focusing on Apple device components and accessories.
According to Bloomberg, Apple has already submitted its proposal for the project to the Indonesian Ministry of Industry and is now waiting for approval.
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If accepted, this investment will enable Apple to comply with the local content rule and allow it to resume selling its products in Indonesia. For Apple, this move not only helps regain its market presence but also strengthens ties with local suppliers and boosts Indonesia’s economy.
Indonesia's local content rule is part of a broader initiative to promote domestic industry growth. Apple isn’t the only company affected by these regulations; Google’s Pixel 9 series also faced a similar ban due to unmet local content standards.
These requirements highlight Indonesia’s commitment to supporting its local industry, and tech companies are adapting to meet these standards.
For Apple, the factory in Bandung represents more than just meeting regulatory demands. It signifies a shift towards a more regionally adaptive approach that supports local markets.
This new facility will allow Apple to establish a stronger foothold in Indonesia, offering Indonesian consumers better access to Apple’s latest products while contributing to local industry development.