Apple is still blocked from selling the iPhone 16 in Indonesia after making a $1 billion factory deal

• Apple still can't sell iPhone 16s in Indonesia due to a ban in place since October.
• Indonesia's industry minister said that Apple doesn't meet rules to source some materials locally.
• That's despite Apple's plan to invest $1 billion in building an AirTag factory in the country.

Apple is still banned from selling the iPhone 16 in Indonesia after a top government official dismissed its $1 billion plan to meet local investment requirements.

Indonesia's industry minister, Agus Gumiwang Kartasasmita, said in a briefing on Wednesday that Apple's proposal, which included a plan to build an AirTag factory in the country, did not fulfill the demands of its local regulations.

Apple has been blocked from selling its latest iPhone model in the country of over 280 million people since October. It currently falls short of a requirement for tech firms to locally source at least 40% of the material in their smartphones and tablets.

Indonesia's investment minister, Rosan Roeslani, said on Tuesday that Apple had "committed" to building the AirTag factory on Batam Island, with operations beginning in early 2026.

However, Kartasasmita said on Wednesday that the factory would not be enough to reverse the ban, with AirTags considered just an accessory, according to comments reported by Bloomberg.

"As of this afternoon, the government does not have a basis for issuing the local content certificates" that Apple needs to sell its flagship device in Indonesia, Kartasamita said. "Apple needs to negotiate with us so that we can issue a certificate."

The comments came after Reuters reported that Indonesia's industry minister had met with Apple representatives on Tuesday to discuss the tech giant's plans to comply with investment expectations and get the iPhone 16 ban lifted.

However, Kartasasmita's comments on Wednesday suggest negotiations between Indonesia and the world's most valuable company had failed to reach a resolution, extending Apple's drought on iPhone 16 sales in Indonesia.

Apple's difficulties in Southeast Asia's largest economy have been deepened as smartphone rivals such as Samsung have pushed forward with their own efforts to meet Indonesia's regulatory demands.

"There's no deadline for compliance," Kartasasmita said. "If Apple wants to sell the iPhone 16, and especially if they plan to launch the iPhone 17, the decision is entirely up to them."

Apple did not immediately respond to BI's request for comment.