Indonesia bans sales of Google phones days after blocking iPhone 16
Indonesia said it has banned sales of smartphones from Alphabet’s Google over rules requiring the use of locally made components, days after it blocked sales of tech giant Apple’s iPhone 16 for the same reason.
Indonesia blocked sales of Google Pixel phones because the company has failed to comply with rules requiring certain smartphones sold domestically to contain at least 40% locally produced parts.
“We are pushing these rules so that there is fairness for all investors in Indonesia,” Industry Ministry spokesperson Febri Hendri Antoni Arief said on Thursday. “Google’s products do not meet the schedule we set, so they cannot be sold here.”
Google said its Pixel phones are not currently officially distributed in Indonesia.
Febri said consumers can buy Google Pixel phones abroad as long as they pay the necessary taxes, adding that the country would consider deactivating the phones that are being sold illegally.
The block comes a week after Indonesia said it had blocked sales of the iPhone 16 domestically, also because it did not comply with local content rules.
Companies typically increase the use of domestic components to comply with such regulations, through partnerships with local suppliers or by sourcing parts domestically.
Google and Apple are not among the top smartphone manufacturers in Indonesia. The two largest smartphone manufacturers in the first quarter of 2024 were Chinese company OPPO and South Korean company Samsung, research firm IDC said in May.
Indonesia has a huge, tech-savvy population, making the Southeast Asian country a prime target for technology-related investments.
Bhima Yudhistira, director of the Center for Economic and Legal Studies think tank, said the move was “pseudo” protectionism that harms consumers and undermines investor confidence.
“This creates negative sentiment for investors looking to enter Indonesia,” he said.
© Thomson Reuters 2024
