Apple’s $1 Billion Investment Is ‘Not Sufficient,’ Says Indonesia’s Industry Minister, As Company Tries To Reach Deal To Lift iPhone 16 Sales Ban As Quickly As Possible

The iPhone 16 ban continues to remain in place in Indonesia as Apple tackles some hard talks with the government over a hefty investment that was previously said to have reached a whopping $1 billion. However, a new report mentions a twist in the tale, with the Indonesian Industry Minister seemingly stating that the aforementioned amount was not sufficient. Whether the authorities want Apple to pull out from the deal or these individuals are stern in their beliefs, we will let our readers decide.

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Indonesia’s Industry Minister has also stated that Apple and the government have not set a time frame for the $1 billion deal, suggesting that the iPhone 16 ban will remain in place for now

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To recap, Indonesia introduced an iPhone 16 sales ban last year after Apple failed to meet the requirement that its handsets sold domestically should have 40 percent of parts that were manufactured locally. Even though the country’s President, Prabowo, had seemingly approved the $1 billion offer, Industry Minister Agus Gumiwang Kartasasmita told reporters that he met with Apple’s Vice President of Global Government Affairs, Nick Ammann, and other executives to discuss the new investment proposal. Agus had declined the news outlet any valuable information, and stated that the Indonesian government had not set any time frame for the deal.

The report says that the Industry Minister hypothetically said that if the amount proposed by Apple was $1 billion, then it was ‘not sufficient.’ While the individual has not outright spoken that the amount will be rejected, it hints that the technology giant will have to increase the investment. While that is bold of the Industry Minister, an Indonesian Policy Studies’ Senior Fellow, Krisna Gupta, has warned governments over pushing their lucking with companies like Apple. Seeing as how Apple sold a measly 2.9 million iPhones in the country in terms of shipments, Indonesia does not support the figures for the Cupertino behemoth to spend a ludicrous sum for investment purposes.

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Instead, a region like Vietnam would present better incentives for Apple, ranging from tax incentives, near-instant approvals, and the freedom to source components from different global supply chains. Bear in mind that Apple’s previous investment amounts of $10 million and $100 million have already gone through the disapproval chain, and if the iPhone maker feels that it is being taken unfair advantage of, it might take the deal off the table.

News Source: Reuters