Apple Inc (NASDAQ:AAPL, ETR:APC)’s iPhone 16s will remain subject to a sales ban in Indonesia after a US$1 billion plan to bring it in line with local investment requirements was rejected.
Apple had proposed building an AirTag factory in Indonesia by 2026 to produce the tracking devices locally.
Industry minister Agus Gumiwang Kartasasmita said this fell short of bringing Apple in line with domestic content rules requiring it to produce smartphone parts there, however.
“As of this afternoon, the government does not have a basis for issuing the local content certificates,” he said on Wednesday.
Indonesia blocked sales of Apple’s iPhone 16 in October as part of a wider bid to draw investment from US technology companies.
Rivals, including Samsung and Xiaomi, have set up facilities in Indonesia - Southeast Asia’s largest economy with 280 million consumers - since the rules were created in 2017.
Investment minister Rosan Roeslani separately said Tuesday that Apple’s plan had been approved, though the domestic content rules fall under the industry minister’s domain.
Kartasasmita also warned Apple could face sanctions over non-compliance, but that these would be a last resort.
“We will look for other ways or options,” he said, adding a counterproposal had been sent to Apple.