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Investing.com-- Indonesia and Apple Inc (NASDAQ:AAPL) have agreed on terms to lift the country’s ban on iPhone 16 sales, ending a five-month standoff that saw the U.S. tech giant boost its promised investment in the country to $1 billion, Bloomberg reported on Tuesday citing people familiar with the matter.
The Indonesian Ministry for Industry is expected to sign a memorandum of agreement with Apple as soon as this week, paving the way for the ministry to issue a permit allowing iPhone 16 sales, according to the Bloomberg report. A press briefing is also planned to announce the deal.
The dispute began in October when Indonesia blocked iPhone 16 sales, citing Apple’s failure to meet domestic manufacturing requirements. Apple later pledged a $1 billion investment, which includes training local talent in research and development and setting up accessory production plants.
The agreement also involves a facility on Batam island to produce AirTags, with operations managed by Apple supplier Luxshare Precision Industry Co Ltd (SZ:002475), the report stated.
While the deal is seen as a win for President Prabowo Subianto’s administration, Bloomberg noted that Indonesia has previously reversed similar agreements, and the finalization remains subject to official confirmation.
Both Apple and Indonesia’s Ministry of Industry had declined to comment, the report added.