According to informed sources, after Indonesian President Prabowo Subianto approved the government to accept Apple's (AAPL.US) 1 billion dollar investment, this American technology giant is close to lifting the sales ban on the iPhone 16 in Indonesia.

Informed sources said that during a discussion last weekend about the tug-of-war between the government and Apple, the Indonesian government expressed enthusiasm for the proposal after it was introduced. Last month, Indonesia stated that Apple failed to comply with domestic content requirements for smart phones and tablets, thus banning the sale of Apple's flagship devices.

Informed sources said that at the meeting, Prabowo gave the green light for the government to accept Apple's proposal and urged his cabinet to attract more investments in the future.

Apple's approval this time is based on its expanded investment plan, and the company has submitted an official written proposal to the government. Informed sources said another key aspect is that one of Apple's suppliers will establish a factory in Batam to produce AirTags.

Informed sources said that the factory is initially expected to employ about 1,000 workers. Batam is about a 45-minute ferry ride from Singapore, and Apple chose the island due to its status as a free trade zone that exempts the company from value-added tax, luxury goods tax, and import tax.

AirTags are devices that allow users to track their luggage, pets, or other items. The factory will eventually account for 20% of the global AirTags production.

Another part of this $1 billion investment will be used to establish a factory in Bandung, about a three-hour drive southeast of Jakarta, to produce Other types of accessories and fund Apple's academy in this Southeast Asian country, allowing students to acquire technical skills such as programming.

Prabowo instructed his Coordinating Ministry of Economic Affairs to take the lead in completing the Trade. However, some insiders say the Indonesian government has yet to provide a timeline for when the iPhone 16 will be allowed for sale, and given the Indonesian government's past unpredictability in decision-making, the plan could change. The president's office, Apple, and the Coordinating Ministry of Economic Affairs did not immediately respond to requests for comments.

If Indonesia formally accepts Apple's proposal, it will be a victory for Prabowo, who is seeking to secure more foreign investment to fund his policy commitments.

This will also indicate that Indonesia's aggressive strategy to push large foreign companies to develop products in Indonesia seems to be working, which is part of the country's efforts to boost local manufacturing. By proposing investment in Indonesia, Apple seeks unrestricted access to Indonesia's 0.278 billion Consumer market, where more than half of the consumers are under 44 years old and tech-savvy.

Nevertheless, this case, which has drawn close attention from the foreign business community, could also scare off other companies that fear being pressured by the government to expand their businesses or face consequences.