Indonesia, following the iPhone, banned sales of Google Pixel – they have few local components

Indonesia, following the ban on iPhone sales, banned the sale of Google Pixel smartphones, citing non-compliance with requirements for the use of locally produced components. The country’s authorities require that at least 40% of components in smartphones sold on the Indonesian market be produced on its territory. The measures are aimed at supporting local manufacturing and developing the technology sector in Southeast Asia’s largest smartphone market.

Image source: Google

Until Google receives a certificate confirming that its smartphones meet these requirements, Pixel sales in the country will be blocked. Previously, restrictions were imposed on Apple and its new iPhone 16 – the company did not fulfill an investment obligation in the amount of $95 million, which was one of the conditions for entering the Indonesian market.

As explained by Febri Hendri Antoni Arief, a representative of the Indonesian Ministry of Industry, the rules regarding the localization of 40% of smartphone components are aimed at creating fair conditions for foreign companies investing in the Indonesian economy. He emphasized: “The localization policy is designed to ensure a level playing field for all investors investing in the development of our country, as well as to create added value and strengthen the structure of the domestic industry.”

Indonesian localization requirements can be met in several ways: companies can establish local production of components, develop proprietary firmware, or invest in innovative projects in the country. For example, Samsung and Xiaomi chose to create their own production facilities, while Apple invested in educational programs, opening academies to train local developers. These different approaches allow companies to flexibly adapt to Indonesian requirements while maintaining opportunities to operate in a promising market.

To monitor compliance with these standards, a certification system is used, which has become an important part of Indonesia’s economic policy. The country aims to harness the potential of its large domestic market to accelerate national economic growth. Those companies that fail to comply with regulations face restrictions on selling their products in Indonesia, underscoring the seriousness of the local government’s intentions.

Notably, Google and Apple are not among the top five smartphone brands in Indonesia. According to market research company Counterpoint, the country’s market is shared by other manufacturers, which creates additional difficulties for Google and Apple in a highly competitive market.