Indonesia has prohibited the sale of Google Pixel smartphones for not meeting the country’s domestic content requirements, which demand that 40% of the components or value in smartphones be sourced locally. This policy, designed to promote local industry and fair competition among international investors, has already led to a similar ban on Apple’s iPhone 16, after Apple missed a $95 million investment target to meet Indonesia’s criteria.
The Ministry of Industry explained that to resume sales, Google must secure a local content certification by either manufacturing devices in Indonesia, developing firmware locally, or investing directly in innovation. Samsung and Xiaomi, two major players in Indonesia, meet these requirements through local manufacturing facilities, while Apple has opened developer academies as a way to comply with the regulation. The certification process, part of Indonesia’s “local content level” system, is a key part of the country’s industrial strategy to leverage its large consumer market to boost domestic economic growth.
According to Counterpoint, Google and Apple are not among Indonesia’s top five smartphone brands, which is dominated by other major players that have established more localized operations to meet regulatory demands.
