After the ban on the sale of iPhone 16, Apple Inc. (AAPL.US) plans to invest $100 million in building a factory in Indonesia.

The Ministry of Industry of Indonesia announced on Wednesday that tech giant Apple Inc. has proposed a $100 million investment plan to establish a factory in Indonesia for producing accessories and components. This proposal comes after Indonesia banned the sale of the iPhone 16 by Apple Inc., citing the company's failure to comply with local regulations on components. Indonesia requires certain smartphones sold domestically to contain at least 40% locally manufactured components. Febri Hendri Antoni Arif, a spokesperson for the Ministry of Industry of Indonesia, stated that a meeting will be held on Thursday to discuss Apple Inc.'s proposal to establish a factory in West Java province. He said, "The meeting on Thursday signifies the Minister of Industry's approval of Apple Inc.'s investment commitment." Apple Inc. does not have any production facilities in Indonesia, but has established an application development academy since 2018, with a total cost of 16 trillion Indonesian rupiah (approximately $990 million). For similar reasons, Indonesia has also banned the sale of smartphones produced by Alphabet (GOOGL.US). It is reported that competitor Samsung Electronics has already established factories in Indonesia to comply with the country's localization regulations.