This show how to implements Indication and Hoverable on Compose. This is great to add Mouse and Stylus support in apps, such as hover state, focus state...

ComposeIndicationAndHoverable.kt

/* Copyright 2023 Google.
   SPDX-License-Identifier: Apache-2.0 */

@Composable
fun hoverableHighlightAndPointer() {
    val highlightIndication: Indication = remember {
        HighlightIndication()
    }

    val interactionSource = MutableInteractionSource()

    Column() {
        // This allow to change the mouse cursor when the mouse is hovering the Text composable
        // this is great if developers want to show an action is actionable on something that is not a button
        Text(
            "Hover me with mouse", modifier = Modifier
                .pointerHoverIcon(icon = PointerIcon(TYPE_GRAB), false)
        )
        
        // This allow to change the background of the composable when mouse or stylus is hovering
        // this is great when developers want to show what element of this UI is focused
        Text(
            "Hover me with mouse/stylus",
            modifier = Modifier
                .hoverable(interactionSource)
                .indication(
                    interactionSource, highlightIndication
                )
        )
    }
}

// this code can be found in AOSP androidx/foundation/compose/Indication.kt
// Indication
class HighlightIndication : Indication {
    private class HighlightIndicationInstance(
        private val isPressed: State<Boolean>,
        private val isHovered: State<Boolean>,
        private val isFocused: State<Boolean>,
    ) : IndicationInstance {
        override fun ContentDrawScope.drawIndication() {
            drawContent()
            if (isPressed.value) {
                drawRect(color = Color.Black.copy(alpha = 0.3f), size = size)
            } else if (isHovered.value || isFocused.value) {
                drawRect(color = Color.Black.copy(alpha = 0.1f), size = size)
            }
        }
    }

    @Composable
    override fun rememberUpdatedInstance(interactionSource: InteractionSource): IndicationInstance {
        val isPressed = interactionSource.collectIsPressedAsState()
        val isHovered = interactionSource.collectIsHoveredAsState()
        val isFocused = interactionSource.collectIsFocusedAsState()
        return remember(interactionSource) {
            HighlightIndicationInstance(isPressed, isHovered, isFocused)
        }
    }
}