Nikkei: Apple in talks with suppliers to set up manufacturing facilities in Indonesia

Nearly four months ago, Apple found itself in a peculiar situation as Indonesia enforced a sales ban on its iPhone 16 series in the country. Cupertino had failed to meet Indonesia’s strict investment commitments which require companies to source up to 40% of device components locally. According to a new Nikkei Asia report, Apple is now in talks with supply chain partners to set up iPhone assembly lines in Indonesia, fulfilling the local government’s requirements.

If everything goes according to plan, Indonesia will become the second country in Southeast Asia with iPhone manufacturing facilities after Vietnam. Indonesia is the region’s largest economy, and the added iPhone production would provide a real boost to its tech manufacturing industry.

The Apple-Indonesia saga began in October when the iPhone 16 series and Watch 10 series devices were placed under a sales ban. Apple had initially committed to investing $109 million in local R&D facilities, but those investments only reached $95 million. Following the enactment of the sales ban, Apple pledged an additional $10 million and a new factory in Bandung region which would manufacture accessories and components for Apple devices.

Those efforts were still not enough to circumvent the ban, which led Apple to a new investment commitment of $1 billion alongside a local manufacturing facility for Apple AirTag trackers. It seems like Apple has finally caved to the Indonesian government’s pressure and if all goes well, its iPhone ban will be lifted soon.

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