11/1/2024
Business

Indonesia Bans Google Pixel and iPhone 16 for Not Meeting Local Content Rules

Indonesia has banned sales of Google Pixel smartphones, following a similar block on Apple’s iPhone 16, due to non-compliance with domestic content requirements. The Indonesian Ministry of Industry clarified that both Google and Apple must meet the nation’s regulation mandating that 40% of smartphone components be locally sourced or developed. This can be achieved through manufacturing, firmware development, or investments in local innovation.

Indonesia’s “local content level” certification is part of a broader strategy to stimulate its economy by leveraging its large consumer base. The rule has been successfully met by Samsung and Xiaomi through local manufacturing, while Apple has previously invested in developer academies. However, Apple missed a $95 million investment commitment, resulting in the recent sales block.

Despite Indonesia being Southeast Asia’s largest phone market, neither Google nor Apple ranks among the country’s top five smartphone brands, according to Counterpoint Research. This regulatory approach reflects Indonesia’s intent to deepen local industry structure and foster more equitable conditions for foreign and domestic tech companies alike.

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