Apple (AAPL, Financials) reached an agreement with Indonesia to invest in the country, leading to the lifting of a ban on iPhone 16 sales, according to Indonesian officials, Bloomberg News said Tuesday, citing people privy to the matter.

Announcement of the agreement came from Indonesian Minister of Industry Agus Gumiwang Kartasasmita at a media conference in Jakarta. Indonesia's Ministry of Industry would grant Apple permission to sell the iPhone 16 series in the nation, with 278 million inhabitants, as per the deal.

The agreement calls for Apple building a manufacturing plant on Batam Island to create AirTags, the tracking gadget used by the firm. Operating the plant will be Luxshare Precision Industry, a major Apple supplier.

Beginning in October 2024, the accord marks the conclusion of a five-month dispute started by Indonesia's ban of Apple 16 sales over unfulfilled local investment criteria. Apple first suggested spending $100 million over two years, hence strengthening its commitment from an earlier $10 million pledge. Later on, the business increased their suggested investment to $1 billion.

Indonesian authorities questioned the $1 billion commitment in January, claiming it was inadequate and advised Apple to produce smartphone components locally instead of accessories like AirTags, effectively rejecting the guarantee. Notwithstanding the reservations, both sides reached an agreement before the end of January, resulting in the already announced arrangement.

Apple has not revealed any specifics on the planned Batam Island plant manufacturing capacity or the investment schedule.