Indonesia has upheld a ban on iPhone 16 sales despite Apple's pledge to invest $1 billion in the country.
Jakarta cited the company's failure to meet domestic requirements, AFP reported.
In October, Indonesia banned the marketing and sale of the iPhone 16 model over Apple's failure to meet local investment regulations requiring 40 percent of the phones to be made from local parts as the country seeks to increase investment from giant tech companies.
Investment Minister Rozan Roeslani told reporters that Apple was fully committed to investing $1 billion in building an AirTag factory on the island of Batam, which is expected to provide 65% of global supplies.
It was not clear whether the deal for the factory in the industrial zone had been signed.
"AirTag is an accessory, not a component," Industry Minister Agus Gumiwang Kartasasmita stated, referring to Apple's tracking device.
"Till this afternoon, there is no reason for the ministry to issue a domestic component level certificate for Apple products, especially the iPhone 16," he said.
Agus met with Apple officials on Jan. 7 but said no deal had been reached.
He said Indonesian officials gave Apple a counterproposal and the giant phone maker did not give an immediate response.
"If Apple wants to sell the iPhone 16 as soon as possible, the ball is in their hands, please respond to our counterproposal immediately," the minister explained.
Apple had earlier offered to increase its investment in Indonesia by $100 million to lift the ban on iPhone 16 sales, but the Indonesian government rejected the offer in November.
Despite the sales ban, the government allows the import of iPhone 16s into Indonesia if they are not commercially traded.
The government estimates about 9,000 units of the new model have entered the country this way.
Indonesia also banned the sale of Google Pixel phones as they did not meet the 40% parts requirement.
Around 22,000 Google Pixel phones entered the country last year despite the ban. | BGNES
