Jakarta cited the Google Pixel’s failure to meet the 40% local manufacturing requirement for smartphones sold domestically as the reason for the ban.
Indonesia has announced a ban on the sale of smartphones manufactured by Alphabet’s Google, citing regulations that mandate the use of locally produced components. This decision follows a similar prohibition on the sale of Apple’s iPhone 16 for the same compliance issues.
The Indonesian government has blocked the sale of Google Pixel devices because the company has failed to meet the requirement that at least 40 percent of the components in smartphones sold in the country must be locally sourced.
“We are implementing these regulations to ensure fairness for all investors in Indonesia,” stated Febri Hendri Antoni Arief, spokesperson for the industry ministry, on Thursday. “Google’s products have not complied with the established guidelines, thus they cannot be sold in our market.”
Google has indicated that its Pixel phones are not officially available in Indonesia.
Febri further noted that consumers may purchase Google Pixel phones from abroad, provided they pay the applicable taxes, and mentioned that the government may consider disabling phones that are sold illegally.
This ban comes just a week after Indonesia prohibited the sale of the iPhone 16 for similar reasons related to local content requirements.
Typically, companies adapt to such regulations by collaborating with local suppliers or sourcing components domestically to increase the proportion of local content.
According to research firm IDC, Google and Apple do not rank among the leading smartphone manufacturers in Indonesia, where the top two brands in the first quarter of 2024 were Chinese company OPPO and South Korean firm Samsung.
With a large and tech-savvy population, Indonesia represents a significant target market for technology investments.
Bhima Yudhistira, director of the Center of Economic and Law Studies think tank, characterized the government’s actions as “pseudo” protectionism, arguing that it negatively affects consumers and undermines investor confidence.
“This fosters a detrimental sentiment among investors considering entry into the Indonesian market,” he remarked.
