The Indonesian government has announced a ban on the sale of Google Pixel phones, as Google has not met domestic content requirements. Although approximately 22,000 Pixel phones have entered Indonesia through personal channels, the transactions remain illegal. Previously, Apple was also banned from sales for failing to fulfill investment commitments. The Indonesian government emphasizes that local content rules aim to treat investors fairly and promote domestic industry development, warning that action will be taken against violations of sales. Smartphone manufacturers must meet up to 40% domestic component requirements to ensure more investment
According to Zhitong Finance APP, the Indonesian government recently announced that the sale of Google Pixel phones in the country has been banned due to Google's (GOOGL.US) failure to meet domestic content requirements. Febri Hendri Antoni Arief, a spokesperson for the Ministry of Industry, pointed out at a press conference that although approximately 22,000 Pixel phones have entered Indonesia this year through personal shipments or carry-on luggage, trading these phones in Indonesia remains illegal.
Previously, Apple Inc. (AAPL.US) faced a sales ban on the iPhone 16 from the Indonesian government for failing to fulfill its investment commitments. Apple has sought a meeting with Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, to discuss the ban, but the meeting date has yet to be determined. He emphasized that Indonesia's local content rules and related policies aim to treat all investors fairly and promote added value and deepening of the domestic industrial structure.
The Indonesian government warned that it would take action against online and physical stores selling these phones and deactivate their IMEI identification codes, making these devices unable to register with local telecom providers. Phones purchased abroad are allowed for personal use but must be declared upon entry and subject to high fees.
Indonesia implements restrictive policies on foreign enterprises to ensure more investment. Smartphone and tablet manufacturers must meet domestic component requirements of up to 40%, with the specific ratio depending on their business scale in Indonesia. Companies can meet these requirements by manufacturing equipment in Indonesia, developing firmware, or investing in innovation.
The Indonesian Ministry of Industry noted that Apple's investment in the developer academy established in the country amounts to 15 trillion Indonesian rupiah (approximately 95 million USD), which is lower than its commitment of 17 trillion Indonesian rupiah. Meanwhile, competitors like Samsung Electronics and Xiaomi have established factories locally.
It is understood that Indonesia's economy is valued at 1 trillion USD, making it a potential growth market. Government data shows that there are over 350 million active mobile phones in the country, with a population exceeding 270 million. Last year, neither Google nor Apple made it into the top five smartphone brands in the country. These policies and actions reflect the Indonesian government's emphasis on the investment and compliance requirements of foreign enterprises in the local market, as well as its determination to promote the development of domestic industries