Indonesia requires that 40 percent of components in products sold domestically must come from local sources. This rule recently led the country, the largest economy in Southeast Asia, to prohibit Google’s Pixel phones from being sold there, as they did not meet this requirement.
“We enforce these regulations to ensure fair conditions for all investors in Indonesia,” stated Febri Hendri Antoni Arief, spokesperson for Indonesia's Industry Ministry, on Oct. 31. He explained that since Google’s products don’t comply with the mandate, they cannot be sold in the country.
Though Indonesians can still buy Pixel phones abroad, they will need to pay the relevant taxes upon import. Febri also noted that the government may take measures to disable Pixel phones sold illegally within Indonesia.
This announcement came a week after Indonesia also banned the sale of Apple’s iPhone 16.
On Oct. 8, Industry Minister Agus Gumiwang Kartasasmita cited that the iPhone 16 was restricted due to Apple’s failure to renew a certification for local component content, which is required for product sales.
Agus further explained that Apple’s certification renewal is on hold while the company completes its promised investments. Apple had previously committed to invest around 1.71 trillion rupiah (approximately $108.5 million) in Indonesia but has only invested 1.48 trillion rupiah (around $94 million) to date.
Apple’s latest iPhone 16 and other new products can only enter the Indonesian market once the company fulfills its investment obligations.
Though Apple does not manufacture in Indonesia, it has established developer academies in Jakarta, Surabaya, and Batam, and announced in April that a fourth academy will open in Bali.
OPPO and Samsung were Indonesia's leading phone brands in the first quarter of 2024, according to IDC research.
Previously, the Indonesian government had asked both Google and Apple to remove Temu, a low-cost Chinese e-commerce app, from their app stores to support local small and medium businesses. Micro, small, and medium enterprises constitute about 99 percent of businesses in Indonesia, which is Southeast Asia’s largest e-commerce market.
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