Indonesia Bans Sales of Google Pixel and iPhone 16 Over Local Component Rule

In a decisive move to bolster local manufacturing, Indonesia has blocked the sales of smartphones by Google and Apple, including Google Pixel models and Apple’s latest iPhone 16, due to their failure to comply with a national rule mandating at least 40% of locally manufactured components in devices sold domestically.

Industry ministry spokesperson Febri Hendri Antoni Arief confirmed that Google Pixel phones do not adhere to the 40% local content requirement set by Indonesia, saying, “We are enforcing these rules to ensure fair investment conditions in Indonesia. As Google’s products have not met these requirements, they are barred from sale in the country.” While Google confirmed its Pixel phones aren’t officially distributed in Indonesia, officials stated consumers could still import them by paying necessary taxes but warned against illicit sales.

This measure follows Indonesia’s recent ban on iPhone 16 for the same reason. Smartphone companies often meet local component requirements by forming partnerships with local suppliers or sourcing more parts domestically. With Indonesia’s large and tech-savvy population, the Southeast Asian nation represents a key market for tech investments.

However, some analysts argue this approach could dissuade investment. Bhima Yudhistira, director of the Center of Economic and Law Studies, expressed concerns, calling it “pseudo-protectionism” that might harm consumers and investor sentiment, adding, “Such policies can create a negative atmosphere for new investors considering Indonesia.”

Despite these moves, Google and Apple are not among Indonesia’s leading smartphone brands; OPPO and Samsung held the top spots in early 2024, according to IDC research. For now, the tech landscape in Indonesia faces new questions about how global companies will adapt to these regulations.