JAKARTA, Dec 5 (Reuters) - Tech giant Apple ( AAPL )

plans to invest $1 billion in a manufacturing plant in Indonesia

that produces components for smartphones and other products,

Indonesia's investment minister said on Thursday.

In October, Indonesia banned sales of the iPhone 16 because

it said Apple ( AAPL ) had not adhered to rules that require phones sold

domestically to have at least 40% locally made parts. And this

week, the government said it would increase the local content

requirement.

Investment minister Rosan Roeslani told reporters that

details of the planned investment were still being ironed out,

but when asked confirmed it was the expected $1 billion

investment he had flagged earlier this week.

"We will discuss with them some more ... our hope is for

everything to be announced in the next week after receiving a

written commitment from them," he said.

Last week, the government had rejected a $100 million

investment proposal from Apple ( AAPL ) to build an accessory and

component plant as not enough to reverse the iPhone 16 ban.

Apple ( AAPL ) did not immediately respond to a request for comment.

Apple ( AAPL ) currently has no manufacturing facilities in

Indonesia, a country of about 280 million people, but since 2018

it has set up application developer academies.

Indonesia considers that strategy an attempt to meet

local content requirements for the sale of older iPhone models.

Companies typically increase the local composition

through local partnerships or by sourcing parts domestically.