Apple remains barred from selling its iPhone 16 in Indonesia despite striking a $1 billion deal to invest in the country, Reuters reported.

Indonesia implemented a ban on iPhone 16 sales at the back end of 2024, citing Apple’s failure to meet regulations requiring smartphones sold in the country to be made using at least 40 per cent of components that are locally produced.

In a bid to overturn the ban, Apple agreed to invest $1 billion in a local production plant last month.

However, Indonesian industry minister Agus Gumiwang Kartasasmita reportedly confirmed that since the facility also intends to manufacture Apple’s AirTag tracking devices, it does not contribute to the requirements for domestically made iPhone components.

According to Reuters, the industry minister held a two day meeting with Apple’s VP of global government affairs, Nick Ammann, over the row, with Apple backing the “innovative investment”.

However, Kartasasmita argued there was “no basis for the ministry to issue a local content certification as a way for Apple to have the permission to sell iPhone 16”, pointing to the plan around producing AirTags, adding the ministry would only count phone components.