In a recent technological development, Indonesia bans the sale of Google smartphones in the country. It comes after the nation imposed a ban on Apple iPhone 16, citing requirements for the manufacture of at least 40% of its components in the country.
The country requires that the components of a smartphone sold locally be manufactured locally; 40% is required at a minimum. Google Pixel phones do not qualify to be sold in the country.
The ban shows Indonesia wants to promote fair investment as well as protect local manufacturers. Industry Ministry spokesperson Febri Hendri Antoni Arief said the regulations promote equal opportunities for all investors in Indonesia.
Indonesia bans sale of Google smartphones, but why?
“Indonesia bans sales of smartphones from Google because their products don’t meet our local sourcing rules,” Arief noted, saying that consumers are allowed to purchase Pixel phones abroad if they pay the applicable taxes on imports. The ministry also intends to disable unapproved phones sold locally without following proper channels.
Google has not spoken on the decision yet. Google and Apple have yet to dominate the Indonesian smartphone market which is dominated by OPPO and Samsung. According to a recent IDC report, Chinese and South Korean brands have maintained a strong presence in Indonesia, with OPPO and Samsung ranking as the top sellers in early 2024.
Indonesia’s ban on Google and Apple phones raises questions
The home of the rapidly growing digital consumer base makes Indonesia an attractive market for global tech firms. Yet, this latest move from the government has been targeted with criticism from some experts who say this policy may scare away international investments.
Bhima Yudhistira, a director at the Center of Economic and Law Studies, said the regulation is “pseudo protectionism” that restricts consumer choice and may ultimately reduce investor confidence in Indonesia. Indonesia bans sales of Google smartphones that do not meet the country’s laws, but this could send a negative message to potential investors, Yudhistira said.
The ban highlights the ongoing struggle between defending the local industry and encouraging foreign investment. The growing market potential in Indonesia, and other places around the world, has been making it a competitive though difficult destination for technology behemoths.
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