Apple has reached an investment agreement with Indonesia after protracted negotiations, which should clear the way for the sale of iPhone 16 handsets in Southeast Asia’s largest economy.

Indonesia and Apple Inc. have agreed on terms to lift the country’s ban on iPhone 16s, said people familiar with the matter, paving the way to end a five-month tug-of-war that forced the US tech giant to raise its promised investment in the country to $1 billion.

Apple will be able to resume its iPhone 16 smartphone sales in Indonesia after the two sides came to an agreement, the Industry Ministry said during a

Indonesia has accepted Apple's $1 billion investment offer, which includes plans to establish an AirTag manufacturing facility and R&D academies.

Jakarta banned the sale of the firm’s latest smartphone in October for failing to comply with rules requiring the use of locally made components.

It’s being widely reported that Apple should be able to sell its iPhone 16 phones in Indonesia soon. Industry Minister Agus Gumiwang Kartasasmita suggested this week that the long-running issue, centring around local manufacture – or the lack of it – could be close to being resolved.

Apple (AAPL) has reportedly reached an agreement with the Indonesian government to lift the iPhone 16 ban after months of negotiations.