Indonesia has expanded its crackdown on foreign smartphones, halting sales of Google Pixel devices due to non-compliance with domestic content regulations. This decision comes on the heels of a recent ban on Apple's iPhone 16, underscoring Indonesia's push to encourage foreign tech companies to invest in local production and support domestic economic growth.
The Indonesian Ministry of Industry mandates that smartphones sold in the country must contain at least 40% locally sourced content. This rule, central to Indonesia’s industrial policy, requires foreign companies to either manufacture components locally, invest in innovation projects, or develop firmware within the country. Companies failing to meet the local content certification standard cannot legally sell their devices in Indonesia.
Febri Hendri Antoni Arief, spokesperson for the Ministry of Industry, stated, "The local content rule and related policies are designed to create fairness for all investors in Indonesia and to add value to our industry." These regulations aim to attract sustained investment and deepen Indonesia's tech ecosystem, reports TechCrunch.
While companies like Samsung and Xiaomi have adhered to the policy by establishing manufacturing facilities in Indonesia, Apple has attempted alternative routes, such as developer academies, to meet compliance standards. However, Apple recently faced a sales ban, reportedly due to missing a $95 million investment target linked to its iPhone 16.
Indonesia's local content framework, known as the “local content level” certification system, requires that smartphone and tablet manufacturers meet the 40% threshold either through physical production, software development, or by funding local tech initiatives. The regulation forms part of Indonesia’s strategy to build a self-sufficient industry and attract sustained tech investment.
Notably, despite their global popularity, neither Google nor Apple ranks among the top five smartphone brands in Indonesia, according to market research from Counterpoint.