JAKARTA (Reuters) – Indonesia stated a $100 million funding proposal from Apple (NASDAQ:) to construct an adjunct and element plant was not sufficient for the nation to permit the tech big to promote its newest iPhone mannequin, its business ministry stated on Monday.

Indonesia in November banned gross sales of Apple’s iPhone 16 after it failed to fulfill necessities that smartphones offered domestically ought to comprise a minimum of 40% locally-made elements.

Indonesia has additionally banned the sale of Alphabet (NASDAQ:)’s Google Pixel telephones over an analogous lack of use of native elements.

Indonesian authorities final week stated Apple had put ahead the funding proposal to elevate the gross sales ban.

Apple didn’t instantly reply to a request for remark.

“We have done an assessment and this (proposal) has not met principles of fairness,” Business Minister Agus Gumiwang Kartasasmita informed a press convention, evaluating the proposal to Apple’s greater investments in neighboring Vietnam and Thailand.

Apple has no manufacturing services in Indonesia, however has since 2018 set up application-developer academies, which Jakarta considers a manner for the corporate to fulfill native content material requirement for the sale of older iPhone fashions.

Corporations normally improve the usage of home elements to fulfill such guidelines by way of partnerships with native suppliers or by sourcing elements domestically.

Agus stated Apple had an impressive funding dedication of $10 million it ought to have carried out earlier than 2023. He additionally needed Apple to decide to new funding till 2026.

The ministry would invite Apple to go to Indonesia to barter additional, Agus stated.