Indonesia Bans Google Phone Sales Following iPhone... What’s the Reason?

"Failure to Comply with Regulation Requiring Over 40% Domestic Parts Content"

Indonesia has banned the sales of Google's Pixel 9 smartphone following the Apple iPhone 16. This is because they did not comply with the regulation requiring the use of at least 40% domestically produced components. Previously, Indonesia had blocked the local sales of the iPhone 16 for the same reason.

[Image source=Yonhap News]

On the 1st (local time), according to major foreign media, Febri Hendri Antoni Arief, spokesperson for the Indonesian Ministry of Industry, explained that Google Pixel did not comply with the usage rule requiring more than 40% of locally manufactured components, stating, "Google's products cannot be sold here because they did not adhere to the system we established."

He added that consumers can purchase Google smartphones from overseas by paying the necessary taxes, and that they are considering measures to deactivate illegally sold phones.

Indonesia does not issue the Domestic Component Level Certificate (TKDN) for smartphones with less than 40% locally manufactured components. This is to foster domestic industry and attract foreign investment. If meeting this requirement is difficult, companies can either use Indonesian software or invest an amount equivalent to 40% of the component value.

Google Pixel failed to meet this requirement and thus did not obtain the Domestic Component Level Certificate (TKDN) necessary for domestic sales. However, Google has stated that it is not yet officially distributing the Pixel 9 smartphone in Indonesia.

The market shares of Google and Apple in Indonesia are not high. According to market research firm IDC, as of May, the top smartphone shipment in Indonesia for the first quarter of this year was China’s Oppo, followed by South Korea’s Samsung Electronics in second place.

Samsung Electronics and China’s Xiaomi, among others, have established factories in Indonesia and sell smartphones produced locally.

Indonesia is one of the markets that smartphone manufacturers cannot afford to miss. Indonesia ranks fourth in the world by population (about 280 million), and there are 350 million smartphones in use, exceeding the population.