Indonesia plans to maintain the current ban on the iPhone 16 until the required conditions are met.

Indonesia reportedly wants Apple to open a manufacturing facility for iPhone components in the country in order to lift the ban.

Indonesia’s Industry Minister Agus Gumiwang Kartasasmita has reportedly held multiple meetings with Apple executives in recent days, with the two sides agreeing to a production facility for Apple’s AirTag trackers to be set up on the island of Batam.

Apple has previously committed to investing $1 billion in the country, but that is still not enough for Indonesian authorities to lift the ban on the iPhone 16.

“There is no basis for the ministry to issue a local certificate as a way for Apple to get permission to sell the iPhone 16 because (the plant) has no direct connection,” Kartasasmita said, adding that the ministry will only consider components for the phones.

The root of the iPhone 16 ban comes from a specific Indonesian law that requires foreign companies to provide 40% local content for local operations as part of the domestic component level certification (TKDN). Companies can meet these requirements either by locally manufacturing products, developing software locally, or setting up research and development centers.

As things stand, Apple will have to continue negotiations with the Indonesian government while it awaits the next step in this saga.