Apple and Google face phone bans in Indonesia

Both Apple and Google are facing the heat in Indonesia.

Apple’s latest iPhone 16 will not be sold in Indonesia as it does not meet the country's rules on the use of locally made components, the industry ministry said. According to the regulations in Indonesia, certain smartphones sold domestically need to contain at least 40 per cent of parts manufactured locally and the iPhone 16 has not met the requirement.

"Imported iPhone 16 hardwares cannot be marketed in the country, because Apple Indonesia has not fulfilled its investment commitment to earn a local content certification," a spokesperson from the ministry said, adding that the phones can still be brought from abroad for personal use.

Not long after the move, Indonesian government also said that the Google Pixel smartphones will be banned for failing to meet domestic content requirements for the same reason.

Google must obtain local content certification before resuming sales, the Industry Ministry spokesperson said, according to Tech Crunch. He added that the local content rule and related policies are made for fairness for all investors that invest in Indonesia.

According to IDC, as of May this year, Indonesia’s smartphone market grew sharply at 27.4% year-over-year (YoY) and 11.5% quarter-over-quarter (QoQ) to 10 million units in the first quarter of 2024, according to International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker.

Higher-priced smartphones in the US$600 and above segment continued to grow significantly in the first quarter at 12.8% YoY, led by Apple. The mid-range segment of US$200 to US$600 had the highest growth at 73.4% YoY, as Apple, Samsung, vivo, and Xiaomi grew sharply in this price segment. The lower-end segment of of less than US$200 also grew at a whopping 17.8%, led by Transsion.