Indonesia announced it has prohibited the sale of smartphones produced by Alphabet's Google, citing regulations mandating the use of locally manufactured components. This move comes just days after it imposed a similar ban on sales of Apple's iPhone 16. The restriction on Google Pixel phones is due to the company’s non-compliance with a requirement that stipulates at least 40 per cent of smartphone components must be locally sourced for devices sold in the country.
According to a Reuters report, Febri Hendri Antoni Arief, industry ministry spokesperson, said, "We are pushing these rules so that there's fairness for all investors in Indonesia. Google's products have not adhered to the scheme we set, so they can't be sold here."
Febri stated that consumers are free to purchase Google Pixel phones abroad, provided they pay the required taxes. He added that the country may consider deactivating any phones that are sold illegally within its borders.
Google has said that its Pixel phones are currently not officially distributed in Indonesia.
Apple, Google Take The Blow
This ban follows Indonesia's recent decision to block iPhone 16 sales for failing to comply with local content regulations. Companies generally meet these requirements by sourcing parts locally or partnering with domestic suppliers. Unlike top players, OPPO and Samsung—ranked first and second in Indonesia's smartphone market in early 2024, according to research from IDC—Google and Apple hold a smaller share in the country.
With its large, tech-savvy population, Indonesia is an attractive market for tech companies seeking to invest in Southeast Asia.
Bhima Yudhistira, director of the Center of Economic and Law Studies think tank, told Reuters that this move was "pseudo" protectionism which affects consumers and impacts investor confidence. Reuters quoted him as saying, "This creates a negative sentiment for investors looking to enter Indonesia."