The reason is that the group did not comply with the requirements for domestic product production according to local laws.

The iPhone 16 ban was imposed last year after Apple failed to enforce a requirement that at least 35% of smartphone components be made in Indonesia.

Indonesian Industry Minister Agus Gumiwang Kartasasmita noted that the production of the AirTag tracking device, proposed by Apple as a measure to meet these requirements, cannot be recognized. According to him, only components directly present in the smartphone are taken into account.

At the same time, the Minister of Investment said the company plans to build a factory worth about 1 billion USD. The company is expected to begin operations next year.

It is worth noting that Apple, despite lacking a production base in Indonesia, has opened academies in the country to train application developers since 2018.

With a population of more than 280 million people, Indonesia is the fourth most populous country and a growing market for Apple.

Last year, technology market research firm Counterpoint estimated the iPhone maker's share of the high-end smartphone market in Indonesia grew 6% year-on-year, accounting for 40% of phone sales. Smartphones cost over 600 USD.