Indonesia's Industry Minister, Agus Gumiwang Kartasasmita, stated during a briefing on Wednesday that Apple's proposal, which included plans for an AirTag manufacturing facility in the country, did not meet local regulatory requirements.
Since October, Apple has been unable to sell its latest iPhone model in Indonesia, a nation with a population exceeding 280 million. The company has not yet complied with the mandate requiring technology firms to locally source at least 40% of the materials used in their smartphones and tablets.
On Tuesday, Indonesia's Investment Minister, Rosan Roeslani, indicated that Apple had "committed" to establishing the AirTag factory on Batam Island, with operations expected to commence in early 2026.
Despite this, Kartasasmita emphasized on Wednesday that the factory alone would not be sufficient to lift the sales ban, as AirTags are classified merely as accessories, according to Bloomberg's reports.
"As of this afternoon, the government lacks a basis for issuing the local content certificates" necessary for Apple to sell its flagship device in Indonesia, Kartasasmita remarked. "Apple must engage in negotiations with us to facilitate the issuance of a certificate."
These remarks followed a report from Reuters indicating that Indonesia's industry minister had met with Apple representatives on Tuesday to discuss the company's plans to align with investment requirements and lift the ban on the iPhone 16.
However, Kartasasmita's statements on Wednesday imply that negotiations between Indonesia and the tech giant have not yielded a resolution, prolonging Apple's inability to sell the iPhone 16 in Indonesia.
Apple's challenges in Southeast Asia's largest economy have been exacerbated as competitors like Samsung have advanced their efforts to comply with Indonesia's regulatory standards.
"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."