Indonesia has banned sales of Google’s Pixel phones, citing non-compliance with regulations that require at least 40% of components in smartphones sold domestically to be locally manufactured. This ban follows a similar restriction placed on Apple’s iPhone 16 just a week prior for not meeting the same requirements.
The move, announced by Febri Hendri Antoni Arief, spokesperson for Indonesia’s Industry Ministry, aims to create an even playing field for all investors in Indonesia. “We are pushing these rules so that there’s fairness for all investors in Indonesia,” Arief said on Thursday. “Google’s products have not adhered to the scheme we set, so they can’t be sold here.” Although Pixel phones are not officially distributed in the country, Indonesians can still purchase them overseas and bring them into the country if they pay the necessary taxes.
This strict enforcement of local content laws underscores Indonesia’s intent to foster local production and create value for its $1-trillion economy. Companies like Samsung and Xiaomi have met these requirements by setting up manufacturing facilities, while Apple has invested in developer academies. However, both Google and Apple face hurdles in capturing the Indonesian market due to these regulatory demands. Notably, neither ranks among the top smartphone brands in Indonesia, with Oppo and Samsung leading the market, as reported by research firm IDC.
The local content rule, according to Bhima Yudhistira, director at the Center of Economic and Law Studies, is seen as “pseudo” protectionism that could negatively impact consumer choices and investor sentiment. “This creates a negative sentiment for investors looking to enter Indonesia,” he said. The policy is part of a larger strategy to grow Indonesia’s tech and manufacturing sectors and to ensure foreign companies contribute directly to its economy.
Despite the ban, Alphabet’s Google maintains that its Pixel phones remain unavailable for official distribution in Indonesia. Meanwhile, Apple has requested a meeting with Indonesia’s Industry Minister to discuss the terms of compliance. As foreign tech giants face these hurdles, Indonesia’s regulatory stance highlights the complex interplay between global tech ambitions and local economic priorities.
