Indonesia is maintaining its ban on the sale of Apple’s iPhone 16, saying the US tech giant’s proposal to invest $1bn in local manufacturing is still not enough to meet the country’s local content requirements.

This decision emphasizes Indonesia's firm stance on local production, highlighting a significant challenge for Apple in the Southeast Asian market.

The Indonesian government says it will not lift its ban on sales of the iPhone 16 despite Apple committing to $1 billion in manufacturing within the country.

Apple did not immediately respond to a request for comment. Indonesia has previously said it requires Apple to commit to new investments every three years and its last commitment, worth $10 million, ended in 2023. It is required to make a new commitment for 2024-2026 to meet the local content mandate.

The tech giant has faced a ban on sales of the iPhone 16 in the country since October having failed to meet local investment requirements.

Indonesia banned iPhone 16 sales after Apple failed to meet requirements that smartphones sold domestically should comprise at least 35% locally-made parts.

Apple is still barred from selling iPhone 16 models in Indonesia despite agreeing to build a local production facility there, as it has not

Indonesia on Wednesday upheld a ban on iPhone 16 sales despite Apple's $1 billion pledge to invest in the country after a negotiation deadlock, citing the company's failure to meet domestic market requirements.