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After iPhone 16, government bans Google phone sales
The government blocked sales of Google Pixel phones because the company has not met the rules which necessitate certain smartphones sold domestically to contain at least 40 percent of parts manufactured locally.
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New Pixel phones are seen on display during the Made By Google event at Google's Bay View campus in Mountain View, California, the United States on Aug. 13, 2024, when the tech firm announced new Pixel phones, watches and AI technology. (AFP/Josh Edelson)
T
he Industry Ministry has banned sales of smartphones made by Alphabet's Google due to rules requiring the use of locally manufactured components, days after blocking sales of tech giant Apple's iPhone 16 for the same reason.
The government blocked sales of Google Pixel phones because the company has not met the rules which necessitate certain smartphones sold domestically to contain at least 40 percent of parts manufactured locally.
"We are pushing these rules so that there's fairness for all investors in Indonesia," Industry Ministry spokesperson Febri Hendri Antoni Arief said on Thursday.
"Google's products have not adhered to the scheme we set, so they can't be sold here,” he continued.
Google said its Pixel phones were currently not officially distributed in Indonesia.
Febri said consumers can buy Google Pixel phones overseas, so long as they pay the necessary taxes, adding the ministry would consider deactivating any phones that are illicitly sold.
Around 22,000 Google Pixel phones entered Indonesia this year, according to the ministry’s data.
The ban comes a week after the government said it had blocked the sale of the iPhone 16 domestically, also for not meeting local content rules.
Companies usually increase the use of domestic components to meet such rules through partnerships with local suppliers or by sourcing parts domestically.
Google and Apple are not among the top smartphone makers in Indonesia. The top-two smartphone makers in the first quarter of 2024 were Chinese firm OPPO and South Korean firm Samsung, research firm IDC said in May.
Indonesia has a huge, tech-savvy population, making it a key target market for tech-related investment.
Bhima Yudhistira, director of the Center of Economic and Law Studies (Celios) think tank, said the move was "pseudo" protectionism that hurt consumers and impacted investor confidence.
"This creates negative sentiment for investors looking to enter Indonesia," he said.
