Apple's investment in an AirTag factory in Indonesia does not meet local sourcing rules, blocking them from selling the iPhone 16 until requirements are fulfilled.
The Indonesian industry minister stated that Apple needs to negotiate and comply with local content regulations, which require tech firms to locally source at least 40% of materials.
Despite Apple's $1 billion commitment to invest, the government emphasizes that this initiative alone is insufficient to lift the ban on iPhone sales.
Apple must engage in further discussions with Indonesian authorities to secure the local content certificates necessary for selling its flagship devices in the region.
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