Apple Inc. Plans iPhone Assembly Plant in Indonesia

In a strategic move to bypass Indonesia's sales ban on the iPhone 16, Apple Inc. is reportedly in talks to establish a final assembly unit for iPhones within the country. This initiative aims to comply with local regulations requiring smartphones sold in Indonesia to have at least 35% of their components manufactured domestically.

Preparation Underway for Apple's Arrival

One of Apple's iPhone assemblers has already set up a subsidiary in Batam, a city known for its industrial parks, and has begun recruiting engineers to lay the groundwork for the tech giant's new facility. The construction of the plant, which is expected to take at least a year to complete, awaits the formalization of the deal between Apple and the Indonesian government.

Indonesia's Local Content Requirement

The sales ban on the iPhone 16 was initially imposed due to its non-compliance with Indonesia's local content requirement. By establishing a manufacturing presence in Indonesia, Apple not only aims to lift the ban but also to strengthen its supply chain and market presence in Southeast Asia.