Tuesday, December 10, 2024
BusinessTechnology

Indonesia bans sales of Google phones days after blocking Apple’s iPhone 16

Indonesia has announced a ban on the sale of Google’s Pixel smartphones, following a similar prohibition on Apple’s iPhone 16 just days earlier. The government cited non-compliance with local content regulations, which require that at least 40% of smartphone components be manufactured domestically.

Febri Hendri Antoni Arief, spokesperson for the Ministry of Industry, stated on Thursday, “We are pushing these rules so that there’s fairness for all investors in Indonesia. Google’s products have not adhered to the scheme we set, so they can’t be sold here.”

While Google confirmed that its Pixel phones are not officially distributed in Indonesia, consumers are still allowed to purchase them from overseas, provided they pay applicable taxes. However, the government indicated it may deactivate phones that are sold through unauthorized channels.

The ban comes in the wake of Indonesia’s decision to block the iPhone 16, reinforcing the government’s commitment to bolster local manufacturing. Companies often adapt to such regulations by partnering with local suppliers or increasing domestic sourcing of components.

Notably, neither Google nor Apple ranks among the top smartphone brands in Indonesia, where Chinese manufacturer OPPO and South Korea’s Samsung dominate the market, according to research firm IDC.

Economist Bhima Yudhistira, director of the Center of Economic and Law Studies, criticized the government’s approach as “pseudo protectionism,” arguing it undermines consumer choice and could deter future investments. “This creates a negative sentiment for investors looking to enter Indonesia,” he added.

As Indonesia’s tech-savvy population continues to grow, the nation remains an attractive target for technology investments, but these regulatory measures could complicate the landscape for global tech giants.

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