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Indonesia blocks sale of Google Pixel after iPhone 16 ban due to local manufacturing requirements
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Indonesia blocks sale of Google Pixel after iPhone 16 ban due to local manufacturing requirements

Indonesia has banned the sale of Google Pixel smartphones, citing new regulations that require tech companies to source at least 40% of their devices’ components locally. The 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 manufacturing and local investments.

“We are pushing for these rules to be fair for all investors in Indonesia,” said Febri Hendri Antoni Arief, spokesperson for the Industry Ministry. “Google products do not follow the system we have defined and therefore cannot be sold here.”

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

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 encourage investment in the domestic manufacturing sector and create a more balanced playing field for foreign and local investors.

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

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