Indonesia has ceased the sale of Google Pixel smartphones because they did not comply with local content regulations. This action comes after a similar ban on Apple’s iPhone 16, reflecting the country’s strong efforts to encourage foreign companies to invest in local manufacturing.
The Indonesian Ministry of Industry requires that smartphones sold in the country have at least 40% locally sourced content. This rule is important for helping the local economy grow. It requires foreign companies to make parts in Indonesia, invest in local projects, or develop software there. Companies that don't get the local content certification cannot legally sell their phones in Indonesia.
"The local content rule and related policies are made for fairness for all investors that invest in Indonesia, and for creating added value and deepening the industry structure here," said Febri Hendri Antoni Arief, spokesperson for the Ministry of Industry, reports TechCrunch, reports The Daily Star.
Both Google and Apple are navigating the strict regulations that are part of Indonesia's broader strategy to bolster its tech ecosystem and capitalise on its significant consumer market. While companies like Samsung and Xiaomi have complied by establishing local manufacturing facilities, Apple has pursued compliance through alternative means, such as opening developer academies. Despite these efforts, Apple faced a sales ban last week for reportedly falling short of a $95 million investment target tied to its iPhone 16.
Indonesia's "local content level" certification system enforces these regulations, requiring handset and tablet manufacturers to meet the 40% threshold through various channels, whether physical production, software development, or funding local tech ventures. The regulatory framework forms part of Indonesia's ambitions to attract sustained tech investment and build a more self-sufficient industry.
Even with major tech companies operating in the country, neither Google nor Apple is in the top five smartphone brands in Indonesia, according to the market research firm Counterpoint.
Bd-pratidin English/ Afia
