The domestic sales of Google’s Pixel smartphones have been halted because the company failed to meet Indonesia’s requirement that at least 40 percent of the components in certain handsets must be locally sourced.
“We are enforcing these regulations to ensure fairness for all investors in Indonesia,” stated Febri Hendri Antoni Arief, spokesperson for the Ministry of Industry, on Thursday. “Google’s products have not complied with our established guidelines, which is why they cannot be sold in the country.”
Febri added that consumers can still purchase Google’s Pixel smartphones from abroad, provided they pay the applicable taxes, and mentioned that the government may consider deactivating devices sold illegally.
Google has not yet responded to requests for comments via message and email.
This ban follows Indonesia's recent announcement regarding the prohibition of domestic sales of the iPhone 16, which also failed to meet local content standards.
Typically, companies adapt to such regulations by increasing the use of locally manufactured components through collaborations with local suppliers or by sourcing parts within the country.
Bhima Yudhistira, director of the Centre of Economic and Law Studies, characterized Indonesia’s actions as a form of “pseudo” protectionism that negatively affects consumers and undermines investor confidence.
“This fosters a negative perception among investors considering entering the Indonesian market,” he remarked.
Neither Google nor Apple ranks among the leading smartphone brands in Indonesia. According to research firm IDC, the top vendors in the country during the first quarter were Chinese company Oppo and South Korea’s Samsung Electronics. With a large tech-savvy population, Indonesia has emerged as a significant target for technology-related investments in Southeast Asia.