Cover Image for Indonesia halts sales of Google Pixel following iPhone 16 ban.
Fri Nov 01 2024

Indonesia halts sales of Google Pixel following iPhone 16 ban.

Indonesia has banned the sale of Google Pixel smartphones because they do not meet local content requirements. This decision comes just days after the country also blocked Apple's iPhone 16.

Indonesia has decided to ban the sale of Google Pixel smartphones due to non-compliance with local content requirements. This measure comes just a few days after the country blocked the sale of the iPhone 16 in Southeast Asia's largest phone market. The Indonesian Ministry of Industry has indicated that Google phones cannot be marketed until they meet regulations requiring that 40% of the content of smartphones sold in the country be local.

Febri Hendri Antoni Arief, a spokesperson for the Ministry of Industry, told local reporters that Google must obtain local content certification in order to resume sales. Arief emphasized that "the local content rule and related policies are designed to ensure fairness among all investors who invest in Indonesia, as well as to generate added value and deepen the country's industrial structure."

This ban comes after the prohibition imposed on iPhone 16 sales last week when Apple failed to fulfill a $95 million investment commitment. Major smartphone manufacturers are required to manufacture devices, develop firmware, or invest in local innovation to comply with Indonesia's content regulations. For example, the regulations require tech companies to source 40% of the components for phones and tablets from local suppliers, which can be achieved through local manufacturing, firmware development, or direct investments in innovation projects.

Companies can meet these requirements through various approaches. Samsung and Xiaomi, for instance, have established manufacturing facilities, while Apple has opted to open developer academies. This regulation, which is enforced through a certification system known as "local content level," is part of a broader industrial strategy by Indonesia to leverage its substantial consumer market for the benefit of internal economic development. Companies that fail to meet these thresholds will face sales restrictions. According to a market research firm, neither Google nor Apple rank among the top five smartphone brands in Indonesia.