Indonesia has barred Alphabet's (GOOGL, Financials) Google from selling its Pixel smartphones domestically, citing the devices' failure to meet a local requirement that mandates certain handsets contain at least 40 percent locally manufactured components.
This limitation follows Indonesia's equivalent prohibition on Apple's (AAPL, Financials) iPhone 16 for non-compliance with the same local content regulations.
Declaring the decision on Thursday, the Ministry of Industry of Indonesia said, "We are enforcing these rules to ensure fairness for all investors in Indonesia," spokesman Febri Hendri Antoni Arief said. "Since Google's products do not comply with the requirements, they cannot be sold domestically."
While sales of Google's Pixel phones are prohibited in Indonesia, the ministry underlined that users may still purchase Pixel smartphones overseas provided they pay the necessary import taxes. To stop circumvention of the rules, authorities said they could think about deactivating any Pixel phones sold via unauthorized means within Indonesia.
The ministry's position reflects its recent ban on Apple's iPhone 16 for similar reasons, therefore highlighting the nation's effort to raise the percentage of locally produced components used in electronic devices sold inside its borders. Usually, international businesses may satisfy such content criteria by working with Indonesian suppliers or by procuring components locally, therefore guaranteeing that some of their supply chain supports local businesses.
Not yet responding to Indonesia's most recent actions, Google and Apple indicate an increasing emphasis on local content compliance in the nation's fast expanding digital industry. Though both Google and Apple are somewhat well-known worldwide, they neither rank among the top-selling smartphone brands in Indonesia. Research company International Data Corporation claims that in the first quarter leading Chinese brand Oppo and South Korean giant Samsung Electronics (SSNLF, Financials) dominated the Indonesian smartphone market.
With so many tech-savvy people in Indonesia, a country seeing fast digital adoption and consumer interest in high-tech goods, it is a desirable market for technology investments in Southeast Asia The government's focus on local production needs is a component of more general initiatives to boost homegrown businesses and maximize its vast customer base.
