Indonesia has implemented a ban on the sale of smartphones from Alphabet’s Google, following similar restrictions placed on Apple’s iPhone 16, due to non-compliance with local manufacturing regulations. The Indonesian government mandates that smartphones sold in the country must contain at least 40% locally manufactured components, a rule aimed at promoting fairness among investors operating within the nation.
Febri Hendri Antoni Arief, a spokesperson for the industry ministry, stated that Google’s products have not met the local content requirements, leading to the decision to block their sales. Google has responded by indicating that its Pixel phones were not officially distributed in Indonesia. However, consumers can still purchase these phones from abroad, although they will need to pay the relevant taxes, and the government may deactivate devices sold illegally.
Also Read: Apple iPhone 16 Banned in Indonesia: Here’s Why
This regulatory move against Google comes shortly after the Indonesian government also blocked sales of the iPhone 16 for the same reasons. Companies typically adapt to such regulations by increasing their use of local components through partnerships with domestic suppliers or by sourcing parts locally.
While Google and Apple are not among the leading smartphone manufacturers in Indonesia, the country’s large, tech-savvy population makes it an attractive market for tech investments. According to research firm IDC, the top two smartphone vendors in the first quarter of 2024 were Chinese company OPPO and South Korea’s Samsung.
Critics, such as Bhima Yudhistira from the Center of Economic and Law Studies, have described the ban as a form of “pseudo” protectionism that could deter potential investors and negatively affect consumer choices in the market. He argued that such regulations may create a negative sentiment among investors looking to enter the Indonesian market.
