JAKARTA, Jan 7 (Reuters) - Indonesia's industry minister

met representatives of Apple ( AAPL ) on Tuesday to discuss the

company's potential investment in the country, a prerequisite

for the tech giant to sell its latest iPhone 16 locally, the

minister said.

Indonesia last year banned sales of the iPhone 16 after it

failed to meet requirements that smartphones sold domestically

should comprise at least 40% locally-made parts.

Apple ( AAPL ) currently has no manufacturing facilities in

Indonesia, a market of 280 million people, but has since 2018

set up application developer academies in the Southeast Asian

country, which allowed it to sell older models.

Industry Minister Agus Gumiwang Kartasasmita told reporters

he met with Apple's ( AAPL ) vice president of global government affairs,

Nick Ammann, and other executives and that negotiations of

Apple's ( AAPL ) new investment proposal were underway.

"We do not set any time frame for a deal, but we have

set a target for the substance of a deal," Agus said. He

declined to provide details on Apple's ( AAPL ) proposal or Indonesia's

demand.

Another Indonesian cabinet minister said last year Apple ( AAPL )

had offered to invest $1 billion in a manufacturing plant that

produces components for smartphones and other products in order

to comply with regulations and get the sales ban lifted.

Agus declined to confirm those details, but said

hypothetically "if it is $1 billion, it is not sufficient".

Apple ( AAPL ) did not respond to a request for comment.

Indonesia has previously said Apple ( AAPL ) has an outstanding

investment commitment worth $10 million it had not fulfilled as

part of its three-year investment plan in the country, which

ended in 2023. It is required to make a new commitment for

2024-2026 to meet the local content mandate.