Apple Inc. is close to resolving a dispute with Indonesia that could lift the ban on iPhone 16 sales in the country.

This development follows Indonesian President Prabowo Subianto’s approval of a US$1 billion investment proposal from the tech giant, according to sources familiar with the situation.

The proposed investment includes establishing a new facility on the island of Batam, near Singapore, to produce AirTags. This facility is expected to create around 1,000 jobs initially and account for 20% of global AirTag production.

Batam was selected for its free-trade zone status, which exempts businesses from certain taxes and duties.

Additionally, a second plant is planned for Indonesia’s West Java provincial capital Bandung to manufacture various accessories. Funding for Apple academies that will train students in skills like coding is also included in the proposal.

President Prabowo has assigned the Coordinating Ministry of Economic Affairs to finalize the terms of the agreement. However, no specific timeline has been disclosed for when sales of the iPhone 16 might resume. Sources suggest that plans remain tentative, reflecting Indonesia’s history of reassessing agreements.

Neither Apple, the President’s office, nor the Coordinating Ministry of Economic Affairs has commented.

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