JAKARTA (Reuters) – Tech giant Apple has made a $100 million investment proposal to Indonesia to build a factory to manufacture accessories and components, the industry ministry said on Wednesday.

The proposal comes after Indonesia banned the sale of Apple’s iPhone 16 due to the company’s failure to comply with local component rules. Indonesia requires certain smartphones sold in the country to include at least 40% locally manufactured parts.

The Ministry of Commerce will meet on Thursday to discuss the Apple factory project in West Java, its spokesman Febri Hendri Antoni Arif said in a statement.

“By holding a meeting on Thursday, it means that the Minister of Industry welcomes Apple’s investment commitment,” he said.

Apple has no manufacturing plants in Indonesia, but has established app developer academies since 2018 at a combined cost of 1.6 trillion rupiah ($99 million).

Apple did not immediately respond to a request for confirmation.

Indonesia also banned the sale of smartphones made by Alphabet for a similar reason.

(Reporting by Stefanno Sulaiman and Ananda Teresia; editing by Martin Petty)