Indonesia sticks to iPhone 16 ban despite Apple offer to invest $1 billion

Indonesia has maintained a ban on sales of Apple Inc’s iPhone 16 in the country, saying the company’s $1 billion plan to build a factory for AirTags in the country is insufficient to meet local investment requirements.

Industry Minister Agus Jumiwang said in a press briefing on Wednesday that local component rules require Apple to produce part of its smartphones or components locally, while AirTags are phone accessories.

“As of this afternoon, the government has no basis to issue the local component certificates” that Apple needs to sell its flagship phone in Indonesia, he said.

Indonesia banned sales of the iPhone 16 in October as part of a strategy to persuade U.S. tech companies to make bigger investments in Southeast Asia’s largest economy.

The delay in resuming sales deprives Apple of revenue from a promising growth market of about 280 million consumers, where the company is fighting for a foothold with major rivals such as Samsung.