While the highly anticipated launches of the iPhone 16 and Google Pixel 9 are creating a buzz in the international market. However, a surprising turn of events has been recently unfolded in Indonesia. The country has banned the two smartphones from its lucrative market of up to 270 million people. Notably, this move comes after the company’s non-compliance to meet the requirement of 40% locally sourced mobile smartphone components for devices to be sold in the country.
According to the Indonesian government, the smartphone manufacturers are required to meet 40% of local content through either manufacturing, firm development, or direct investment in innovative projects.
However, neither Apple nor Google Pixel has fulfilled their demands and met the requirement, the Indonesian officials reported.
The companies can serve to meet these requirements through different sources. Tech giants Samsung and Xiaomi have successfully established the manufacturing facilities. Apple has opted for developer academies since 2018.
Apple’s iPhone 16 Ban in Indonesia
In a recent statement, the Indonesian Industry Minister, Agus Gumiwang Kartasasmita, said, “Apple’s iPhone 16 cannot be sold in Indonesia yet because the extension of the TKDN certification is still pending, awaiting further investment realization from Apple.”
This is to be noted that Apple has invested only 1.48 trillion rupiah of its promised 1.71 trillion rupiah in Indonesia. As per the latest report, Apple has now proposed $10 billion USD to manufacture additional smartphone components and goods in the country, seeking to reverse the ban on its latest series.
Google Pixel Bans in Indonesia
Days after the ban on iPhone 16, the Indonesian Ministry of Industry has announced to impose restrictions on Google’s Pixel smartphones. This has been done considering the company’s non-compliance with the 40% local content rules.
Febri Hendri Antoni Arief, the spokesperson of the industry, underlined, “The local content rule and related policies are made for the fairness of all investors in Indonesia.”
Additionally, Indonesians can still purchase an iPhone 16 or Pixel aboard, but they may have to pay additional taxes. The local authorities of the country may also deactivate the imported and unofficially sold smartphones.
iPhone and Apple’s Demand in Indonesia
Despite the recent clampdown in both companies, Indonesian consumers favor Asian brands over Western ones. Apple and Google are not among the most favored brands in the country. Neither Apple nor Google rank in Indonesia’s top 5 smartphone manufacturers. Chinese brand Oppo is the most popular smartphone manufacturer in the country with a share of about 17%, followed by Samsung with a market share of around 16.4%.
However, there’s hope for resolution, particularly for Apple within the coming months. The company’s CEO, Tim Cook, visited Jakarta earlier in April this year. He discussed several strategies and plans about the smartphone manufacturing in the country with President Joko Widodo.
“We talked about the president’s desire to see manufacturing in the country, and it is something we look at,” the CEO asserted following their meeting in April.
Though, until the final resolution with the companies, both the smartphones will remain unavailable to be sold in the Indonesian markets.
Kanishka Malhotra is a seasoned journalist with a deep passion for reporting and uncovering the truth. With a specialization in research and investigative Journalism, she has covered wide range of topics related to social issues, travel, lifestyle, technology, Entertainment and much more. She believes to express and share her creativity to the world through words. With relentless pursuit of knowing and uncovering the truth, Kanishka continues to leave a mark in the world of journalism.
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