JAKARTA, Nov 1 (Reuters) - Indonesia said it 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 ( AAPL ) iPhone 16
for the same reason.
Indonesia 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% of parts
manufactured locally.
"We are pushing these rules so that there's fairness for all
investors in Indonesia," Febri Hendri Antoni Arief, industry
ministry spokesperson, said on Thursday. "Google's products have
not adhered to the scheme we set, so they can't be sold here."
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 country
would consider deactivating the phones that are illicitly sold.
The block comes a week after Indonesia said it had blocked
the sales of 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 ( AAPL ) 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 the
Southeast Asian nation a key target market for tech-related
investment.
Bhima Yudhistira, director of the Center of Economic and
Law Studies think tank, said the move was "pseudo" protectionism
that hurts consumers and impacts investor confidence.
"This creates a negative sentiment for investors looking to
enter Indonesia," he said.
(Reporting by Bernadette Christina and Stanley Widianto;
Editing by Lincoln Feast.)