The Apple Inc. executive leading talks with Indonesia to lift the country’s iPhone 16 sales ban departed Jakarta on Wednesday, after a late stage about-face from a minister scuttled a deal, according to people familiar with the matter.

Hardball tactics resulted in Apple pledging to invest $US1 billion in Indonesia, after the sales of iPhone 16 smartphones were banned for not having enough locally manufactured components.

Indonesia kept a ban on the sale of Apple Inc.’s iPhone 16s, saying its $1 billion plan that includes building an AirTag factory is insufficient to meet local investment requirements.

Apple is in negotiations with an increasingly demanding Indonesia to get its iPhone 16 ban lifted, while Huawei plans to shortly launch its smartphone in the country.

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

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.

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’s U.S. $1 billion proposal to set up a local factory for AirTags – tracking devices linked to an app – has failed to sway the Indonesian government, leaving the iPhone 16 banned in Southeast Asia’s largest economy.

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