Days after stopping the sale of iPhone 16s for similar reasons, Indonesia recently banned the sale of Google Pixel smartphones, citing non-compliance with its domestic content requirements. Google’s products will not be available for purchase until they satisfy the nation’s requirement that smartphones have 40% local content, according to the Ministry of Industry.

Google needs to obtain local content certification in order to start selling again, according to Industry Ministry spokesperson Febri Hendri Antoni Arief. Arief told local media that the goal of the local content rule is to assure equity for Indonesian investors, encourage the development of added value, and strengthen the local industry structure.

The action was taken soon after Indonesia banned the sale of Apple’s iPhone 16 because the company had not realised its $95 million investment pledge there. Major smartphone manufacturers must use local components, develop firmware, or provide funding for innovation projects in Indonesia under the rules, which are intended to promote domestic growth.

In order for IT businesses to comply with the local content mandate, 40% of their gadget components or related processes must come from within the country. This can involve investing directly in Indonesian tech projects, establishing local software development facilities, or establishing manufacturing operations locally. In order to meet these needs, Apple has chosen to use developer academies, whereas Samsung and Xiaomi, for instance, have established production units.

As part of the nation’s larger plan to use its sizeable consumer market to boost industrial development, the rules are implemented under Indonesia’s “local content level” certification system. In order to promote greater economic self-sufficiency and support its technological sector, Indonesia is advocating for locally supplied components and investment. Sales restrictions are immediately imposed on companies that do not satisfy the rules.

Research firm Counterpoint reports that, despite their efforts, Google and Apple are not among the top five smartphone brands in Indonesia, with Samsung and Xiaomi commanding greater market shares.

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