The original embargo was really an embarrased reponse to the realisation that the brutal Sukhano regime was beyond the pale.
This regime had been installed in the mid-60's by the US and other western powers, and during the cold war our eyes were averted, he was anti-communist after all.
With the new democratic govt. hopefully now settled in, and worries about potential Chinese expansion in the region, the embargo has been reversed.
Are these F-16's ones built for Pakistan, embargoed because of their nuclear programme, then offered to New Zealand only for that contract to be recently terminated?
Indoniesia already has a small force of F-16's, which must be suffering from spares and attrition problems by now.