Indonesia has imposed a ban on the sale of smartphones made by Alphabet's Google, citing the company’s failure to comply with local content regulations. The rules stipulate that at least 40 per cent of the components in smartphones sold in the country must be manufactured domestically. This decision follows closely on the heels of a similar ban on Apple's iPhone 16 for the same reason.
Febri Hendri Antoni Arief, spokesperson for the country's industry ministry, stated that the regulations aim to promote fairness among all investors operating in Indonesia. "Google's products have not adhered to the scheme we set, so they can't be sold here," he explained. While consumers can still purchase Google Pixel phones from overseas, they are required to pay the necessary taxes upon import. The government has also indicated it may take action to deactivate devices sold illicitly within its borders.
This regulatory stance is part of Indonesia's broader strategy to encourage the use of local suppliers by requiring smartphone manufacturers to either partner with domestic producers or source components locally to meet the required thresholds.
Despite the recent bans, Google and Apple are not among the leading smartphone manufacturers in Indonesia. According to research firm IDC, OPPO and Samsung dominated the market in the first quarter of 2024. With a large and tech-savvy population, Indonesia remains a key target for technology-related investments, highlighting the delicate balance the government must strike between regulatory compliance and fostering a welcoming environment for foreign investment.
(Inputs from Reuters)
