Indonesia is expected to receive a $1 billion (RM4.45 billion) investment commitment from technology firm Apple Inc within a week after the government banned the sale of the iPhone 16 for failing to comply with local laws.
Indonesia stopped sales of the smartphone because the product was not made from at least 40% local materials and it was not complied with by Apple.
The proposal is to increase domestic needs and productivity.
Investment Minister Rosan Roeslani told lawmakers that Indonesia expects more investment if Apple decides to make the country part of its supply chain.
However, Apple has not issued any statement on the request.
He added that the law will benefit local investors and jobs. This will attract global supply chains to suppliers.
Apple had previously proposed an investment of $100 million (RM455 million) to build an accessories and components factory in Indonesia to overturn the ban, but the government rejected it on the grounds that it did not meet the principles of fairness.
Apple does not have a manufacturing facility in Indonesia, a country of about 280 million people, but since 2018 has set up an app developer academy.
Indonesia sees the strategy as an attempt to meet local content needs for older iPhone models.
Companies typically boost local content through domestic partnerships or by acquiring domestic stakes.
