While critics call it “pseudo protectionism” that harms consumers and investors, Indonesia has banned Google Pixel phones over locally sourced content rules, following Apple’s iPhone 16.
The Indonesian government has announced a ban on the sale of Google smartphones, following a similar move against Apple’s iPhone 16. The ban cites non-compliance with regulations that require a minimum of 40% locally sourced components in smartphones sold in the country.
According to the government, Google has not met the required threshold for locally manufactured parts. Last week, Febri Hendri Antoni Arief, spokesperson for Indonesia’s Ministry of Industry, explained that the government was implementing these regulations to ensure fair competition for all investors in the country. He added that Google’s products had not complied with the established rules, which is why they could not be sold in Indonesia.
Arief further stated that while consumers can still purchase Google Pixel phones overseas, they must pay the applicable taxes. He also mentioned that the government might consider deactivating devices illegally sold within the country.
However, Google has not yet commented on the matter.
This ban follows Indonesia’s decision to block the sale of Apple’s iPhone 16 a week earlier, citing similar issues with compliance with local content requirements.
To meet these regulations, companies typically increase the use of locally sourced parts by forming partnerships with domestic suppliers or manufacturing components within the country.
Both Google and Apple are not among the leading smartphone brands in Indonesia. According to research by IDC, the top two smartphone vendors in the first quarter of 2024 were China’s OPPO and South Korea’s Samsung.
According to Reuters, Indonesia’s large, tech-savvy population makes it an important market for technology investment.
Bhima Yudhistira, the director of the Centre of Economic and Law Studies, an Indonesian think tank, criticised the move, describing it as “pseudo protectionism.” He warned that it would harm consumers and weaken investor confidence, noting that it could create negative sentiment among investors seeking to enter Indonesia.
