((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
Indonesia says it has banned the sale of smartphones made by Alphabet's
GOOGL.O Google over rules requiring the use of locally made components, days after it blocked sales of tech giant Apple AAPL.O's iPhone 16 for the same reason.
Indonesia has blocked sales of Google Pixel phones because the company failed to comply with rules that require some smartphones sold in the country to contain at least 40% locally made parts.
“We are pushing these rules so that there is fairness for all investors in Indonesia,” Febri Hendri Antoni Arief, spokesperson for the Ministry of Industry, said on Thursday. “Google products have not adhered to the system we established, so they cannot be sold here
Febri said consumers can buy Google Pixel phones abroad, as long as they pay the necessary taxes, adding that the country would consider disabling phones that are sold illicitly.
Google did not immediately respond to a message and email seeking comment.
The blockage comes a week after Indonesia said it had blocked sales of the iPhone 16 in its territory, also for non-compliance with local content rules.
To comply with these rules, companies typically increase the use of domestic components through partnerships with local suppliers or by sourcing parts domestically.
Google and Apple are not among the major smartphone manufacturers in Indonesia. The top two smartphone makers in the first quarter of 2024 were China's OPPO and South Korea's Samsung 005930.KS, research firm IDC said in May.
Indonesia has a large, tech-savvy population, making the Southeast Asian country a key target market for technology-related investments.
Bhima Yudhistira, director of the Center of Economic and Law Studies think tank, said it was “pseudo” protectionism that hurts consumers and affects investor confidence.
“This creates a negative sentiment for investors looking to enter Indonesia,” he said.
