Amid a push to expand its presence in Southeast Asia, Apple is reportedly planning a significant investment in Indonesia, potentially bringing manufacturing closer to its fast-growing customer base in the region. Sources indicate that the company has submitted a proposal for a $10 million manufacturing plant near Jakarta, aiming to meet the country’s recent regulatory demands on domestic content in smartphones.
The proposal arrives at a pivotal moment for Apple in Indonesia. The country, a substantial market with over 280 million people and more than 350 million active mobile phones, recently blocked iPhone 16 sales due to new protectionist policies. Enforced by President Prabowo Subianto’s administration, these policies mandate a 40% local content in smartphones sold within Indonesia. Apple’s inability to comply with this threshold led to a temporary sales halt, prompting the tech giant to rethink its approach to the Indonesian market.
Apple’s planned facility, potentially located in the city of Bandung, would primarily focus on producing components and accessories for Apple devices. In collaboration with its existing suppliers, the new site would help the company align with local content requirements, potentially easing restrictions on iPhone 16 and other devices. The Ministry of Industry is currently evaluating Apple’s proposal, which, if approved, would mark Apple’s first direct manufacturing investment in Indonesia.
The sales restrictions have highlighted Indonesia’s growing importance to major tech companies. Besides Apple, Google’s Pixel phones have also been impacted by the domestic content regulations. In recent years, Apple has taken steps to deepen its connections in the country, establishing four developer academies that provide local students and engineers with training in app development. These academies are part of Apple's broader strategy to engage with and contribute to the Indonesian tech ecosystem, yet officials are increasingly vocal about the need for tangible investments in local production.
Despite the ban, Indonesian consumers continue to find ways to acquire iPhone 16 models, with approximately 9,000 units entering the country through personal imports. However, current regulations prevent these devices from being sold commercially, limiting them strictly to personal use.
As the Ministry of Industry considers Apple’s proposal, the decision could set a precedent for other tech firms operating in Indonesia, paving the way for a new era of manufacturing in one of Southeast Asia’s most dynamic markets.
