The iPhone 16 ban is still in effect in Indonesia as Apple is in heated talks with the government over a huge investment previously said to reach $1 billion. However, a new report suggests a change in the story, with Indonesia’s Industry Minister apparently stating that the figure is not enough. Whether the authorities want Apple to pull out of the deal or these guys are steadfast in their beliefs, we’ll let our readers decide.

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

In summary, Indonesia imposed a sales ban on the iPhone 16 last year after Apple failed to meet the requirement that its phones sold domestically must have 40 percent domestically produced parts. Although Indonesian President Prabowo appears to have agreed to 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 has refused to provide any valuable information to the news outlet, and stated that the Indonesian government has not set a time frame for the deal.

The report states that the Industry Minister hypothetically said that if the amount proposed by Apple was $1 billion, then it was ‘not enough’. While the individual has not directly stated that the amount will be rejected, it does hint that the tech giant will have to increase its investment. Even though the Minister of Industry dares to do this, Krisna Gupta, Senior Fellow for Indonesian Policy Studies, has warned the government not to impose its fate on companies like Apple. Seeing how Apple only sold 2.9 million iPhones in the country in terms of shipments, Indonesia does not support the Cupertino giant’s figures for spending such a ridiculous amount for investment purposes.

In contrast, a region like Vietnam would provide better incentives for Apple, ranging from tax incentives, near-instant approvals, and the freedom to source components from various global supply chains. Keep in mind that Apple’s previous investment amounts of $10 million and $100 million have gone through a chain of rejections, and if the iPhone maker felt they were being unfairly taken advantage of, they would probably have backed out of the deal.

News Source: Reuters