Indonesia blocks Google Pixel sale after iPhone 16 ban over local manufacturing requirements

Indonesia has placed a ban on the sale of Google Pixel smartphones, citing new regulations that require tech companies to source at least 40% of their device components locally. This move comes just days after Indonesia blocked the sale of Apple’s iPhone 16 for similar reasons, marking an assertive stance in the Southeast Asian nation’s push for local manufacturing and investment.

“We are pushing these rules so that there’s fairness for all investors in Indonesia,” said Febri Hendri Antoni Arief, a spokesperson for the industry ministry. “Google’s products have not adhered to the scheme we set, so they can’t be sold here.”

Google has clarified that its Pixel phones are not officially distributed in Indonesia, but Febri noted that consumers can still purchase the phones from overseas if they pay the necessary import taxes. Additionally, he mentioned that authorities are considering deactivating Pixel devices that are brought into the country illegally.

This recent restriction on Google Pixel phones follows Indonesia’s ban on the iPhone 16, which was imposed last week under the same local content rule. These regulations are part of Indonesia’s broader effort to foster investment in domestic manufacturing and create a more balanced playing field for both foreign and local investors.

Such rules typically encourage tech companies to form partnerships with local suppliers or to source parts domestically. Google and Apple, however, are not currently among the top smartphone brands in Indonesia, where Chinese giant OPPO and South Korea’s Samsung dominate the market. According to IDC, these two companies led smartphone sales in Indonesia during the first quarter of 2024.

With its large, tech-savvy population, Indonesia remains a key target for global tech companies. The government’s local content rules reflect its intention to not only attract foreign investment but also develop a stronger, more self-reliant domestic manufacturing sector.