Investing.com-- Apple Inc (NASDAQ: AAPL ) is exploring the possibility of manufacturing iPhones in Indonesia as part of its strategy to lift a government-imposed sales ban on its latest models, Nikkei Asia reported on Wednesday citing sources familiar with the matter.

This initiative would mark Apple's inaugural iPhone production venture in Indonesia, a country currently lacking a substantial supply chain for such sophisticated electronics, the Nikkei report stated.

The move aligns with Indonesia's ambitions to generate employment and enhance its technological manufacturing sector.

The sales ban was imposed in October last year, with Indonesia requiring 40% of smartphone components to be locally produced, a benchmark Apple has yet to meet.

In November 2024, reports had emerged that Apple has proposed a $100 million investment to establish a manufacturing facility in Bandung, West Java, aiming to comply with these local content regulations.

Concurrently, Apple is addressing challenges in China, where iPhone sales have experienced a significant decline.

To counteract this downturn, Apple has partnered with Alibaba Group (NYSE: BABA ) to develop artificial intelligence features tailored for Chinese consumers, aiming to enhance the iPhone's appeal in this critical market.