Indonesia on Wednesday upheld a ban on iPhone 16 sales despite Apple’s $1 billion pledge to invest in the country after a negotiation deadlock, citing the company’s failure to meet domestic market requirements.Indonesia in October prohibited the marketing and sale of the iPhone 16 model over Apple’s failure to meet local investment regulations requiring that 40 percent of phones be made from local parts as the country seeks to boost investments from giant tech companies.Investment Minister Rosan Roeslani told reporters on Tuesday that Apple was fully committed to invest $1 billion to build an AirTag factory on Batam island, which was expected to supply 65 percent of the global supply.It was unclear if the deal on the factory in the industrial zone had been signed.”AirTag is an accessory, not a component or part of gadgets,” Industry Minister Agus Gumiwang Kartasasmita told a press briefing on Wednesday, referring to the Apple tracking device.”Until this afternoon, the ministry doesn’t have any reason to issue the domestic component level certificate for Apple products, especially iPhone 16,” he said.Agus met with Apple representatives on Tuesday, but he said a deal had not been reached.He said Indonesian officials gave Apple a counterproposal and the giant phone maker did not give an immediate answer.”If Apple wants to sell iPhone 16 as soon as possible, the ball is in their hand, please respond to our counterproposal immediately,” he said.Apple previously offered to increase its investments in Indonesia by $100 million to lift the iPhone 16 sales ban, but the Indonesian government refused the proposal in November.Despite the sales ban, the government allows iPhone 16s to be carried into Indonesia if they are not being traded commercially. The government estimates about 9,000 units of the new model have entered the country that way. Indonesia also banned the sale of Google Pixel phones for failing to meet the 40 percent parts requirement.About 22,000 Google Pixel phones entered the country last year despite the ban.

Equities wavered on Wednesday as sentiment was knocked by a sell-off on Wall Street sparked by data indicating the US economy and jobs market remained robust, further denting hopes for interest rate cuts.With inflation worries already elevated owing to Donald Trump’s pledges to slash taxes, regulations and immigration when he returns to the White House, the latest readings added to uncertainty on trading floors.A closely watched survey of the crucial US services sector saw a pick-up in December, with the prices component soaring far more than expected to hit the highest level since last January.A separate report showed job openings also outstripped forecasts in November to touch a six-month high.The readings made the case for the Federal Reserve to slow its pace of rate cuts, having lowered them three times last year thanks to easing inflation.Focus now turns to Friday’s release of the key non-farm payrolls report, which will provide a fresh snapshot of the state of the labour market and US economy.Yields on key 10-year US Treasuries rose and options suggest they could hit five percent for the first time since October 2023, according to Bloomberg News.That comes after the central bank undertook a more hawkish pivot last month and lowered its outlook for cuts, while several decision makers have recently championed a more cautious approach.All three main indexes on Wall Street ended in the red on Tuesday, with the Nasdaq and S&P 500 shedding more than one percent each.Tech firms, which had led a surge the previous day, were again the key drivers of action, with chip titan Nvidia tanking after a disappointing product presentation. Asian markets, however, diverged.Tokyo, Hong Kong, Taipei, Manila, Mumbai and Jakarta all fell, though Sydney, Singapore, Seoul, Wellington and Bangkok rose. Shanghai barely moved.London and Frankfurt edged up at the open, while Paris was flat.”Recent Fed signals suggest a cautious approach to rate cuts amid a resilient job market and sticky inflation,” said Stephen Innes.”Still, investors are now unanimously betting against any rate changes this month. Moreover, according to the CME FedWatch Tool, odds are tipping below 50 percent for a rate cut before June, underscoring a tense watch on the Fed’s next moves.”- Key figures around 0810 GMT -Tokyo – Nikkei 225: DOWN 0.3 percent at 39,981.06 (close)Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,279.84 (close)Shanghai – Composite: FLAT at 3,230.17 (close)London – FTSE 100: UP 0.1 percent at 8.254,06Euro/dollar: DOWN at $1.0330 from $1.0342 on TuesdayPound/dollar: DOWN at $1.2461 from $1.2479Dollar/yen: UP at 158.16 yen from 157.98 yenEuro/pound: UP at 82.90 pence from 82.87 penceWest Texas Intermediate: UP 0.7 percent at $74.73 per barrelBrent North Sea Crude: UP 0.5 percent at $77.46 per barrelNew York – Dow: DOWN 0.4 percent at 42,528.36 (close)