Indonesia has prohibited the sale of Google Pixel smartphones due to non-compliance with local content requirements, shortly after imposing a similar restriction on Apple’s iPhone 16 in the region's largest smartphone market.
The Ministry of Industry stated that Google’s devices cannot be sold unless they adhere to the mandate requiring 40% of smartphone components to be sourced domestically. Industry Ministry spokesperson Febri Hendri Antoni Arief emphasized that the regulation aims to ensure fairness for investors and bolster Indonesia's industrial framework by adding value and enhancing local capabilities.
Last week, Apple faced a ban on iPhone 16 sales for failing to fulfill a $95 million investment commitment. To meet Indonesia’s regulations, major smartphone manufacturers must either produce devices locally, develop firmware, or invest in local innovation initiatives.
The local content rule stipulates that 40% of components in handsets and tablets sold in Indonesia must be sourced domestically. Companies can meet this requirement through various methods, including manufacturing, firmware development, or innovation investments. While brands like Samsung and Xiaomi have built local factories, Apple has pursued the creation of developer academies to comply with the regulations.
This policy, enforced through a certification process called “local content level,” is part of Indonesia’s strategy to leverage its consumer base for economic growth. Companies failing to meet these standards face restrictions on their sales.
According to Counterpoint, a marketing research firm, neither Google nor Apple ranks among Indonesia’s top five smartphone brands.
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