Indonesia moved to firmly continue blocking all iPhone 16s manufactured by Apple on Wednesday, despite the telecommunications giant agreeing to invest $1 billion in the country.
The idea for the investment came after negotiations reached a deadlock due to Apple's failure to meet local manufacturing requirements.
Although Apple plans to build an AirTag factory on Batam Island, the government insists that at least 40% of the iPhone 16 components must be produced locally.
Industry Minister Agus Gumiwang Kartasasmita insisted that the iPhone 16 sales ban will remain in place until Apple meets the government's requirements.
Apple had previously offered to increase its investment in Indonesia by $100 million to lift the iPhone 16 sales ban, but the proposal was rejected by the Indonesian government in November.
Although the Indonesian government is adamant on banning the iPhone 16 from entering the country, the government still allows the phone to be brought into Indonesia if it is not sold commercially.