Apple Inc's Vice-President of Global Affairs Nick Amman, departed Jakarta on Wednesday without securing an agreement to lift the sales ban on the iPhone 16 in Indonesia. Despite Indonesia's President Prabowo Subianto giving the green light to Apple's US$1 billion investment offer, Minister for Industry Agus Gumiwang Kartasasmita blocked the deal during the final stages of negotiations.

The ban on the iPhone 16 was imposed in October due to Apple's failure to meet Indonesia's domestic manufacturing requirements for smartphones and tablets. Apple's investment offer included setting up a plant in Batam to produce AirTags, along with funding local academies for tech skill development. However, despite President Prabowo's approval, Kartasasmita insisted that Apple meet the local manufacturing regulation before the ban could be lifted.

The disagreement highlights the power struggle within Indonesia's government and the challenges global companies face in navigating the country's nationalistic political landscape. People familiar with the matter revealed that Prabowo had warmed to Apple's expanded proposal after being briefed on it last month. He directed his Coordinating Minister for Economic Affairs, Airlangga Hartarto, to take the lead in finalising the deal, but it was Kartasasmita who upheld the ban.

While Amman's departure marks a setback, other members of his team remain in Jakarta to continue negotiations. The situation underscores Indonesia's ongoing push for increased local manufacturing, with the aim of creating jobs and boosting domestic industries. Critics argue that such aggressive tactics may discourage international companies from investing in Indonesia, especially those looking to reduce reliance on China.

Apple's interest in expanding its presence in Indonesia is driven by the country's 278 million consumers, many of whom are tech-savvy and under the age of 44. The company hopes to gain unrestricted access to this lucrative market by investing in local production.