Apple has struck a deal with Indonesia to bring investment of about $320mn to south-east Asia’s largest economy to help reverse a ban on iPhone 16 sales, resolving a months-long stand-off over the level of the tech giant’s manufacturing investment in the country.

The final figure is considerably less than Apple’s $1bn offer last month to manufacture accessories in the country, which was rejected by Jakarta as it demanded the company also set up factories to make smartphone components.

Indonesia banned the sale of the latest iPhone last October because of Apple’s failure to meet a regulation that requires 40 per cent of smartphone components to be sourced locally. Since then, President Prabowo Subianto’s government has been in talks with Apple over local manufacturing investments.