Indonesian authorities have suspended the sale of Google Pixel smartphones due to the failure to comply with the requirement to use at least 40% of locally produced components in smartphones sold on the domestic market. The decision came a few days after a similar ban on the sale of the new iPhone 16, Reuters reports.
“We are insisting on these rules to create a fair environment for all investors in Indonesia,” said Industry Ministry spokesman Febri Hendri Anthony Arief. According to him, Google did not comply with the scheme introduced by the government, so the sale of its products on the domestic market was banned.
The spokesperson also noted that Indonesian consumers can buy Google smartphones abroad by paying the necessary taxes, and the country is considering blocking illegally imported phones.
Companies tend to meet similar requirements by partnering with local manufacturers or purchasing components in Indonesia. However, Google and Apple are not the leaders of the smartphone market in Indonesia: according to IDC, the main manufacturers here are China’s OPPO and South Korea’s Samsung.
Indonesia, a market with 350 million mobile phones and a $1 trillion economy, is a key player in Southeast Asia for technology investment.