The world’s fourth most populous country has closed its doors to two of the biggest names in technology, with Indonesia banning both Apple’s iPhone 16 and Google’s Pixel smartphones from its lucrative market of 270 million people, citing violations of local investment rules. .
The Indonesian government requires smartphone manufacturers to meet the 40% local content requirement either through manufacturing, firmware development, or direct investment in innovation projects. Neither Apple nor Google met these requirements, according to Indonesian officials.
Companies can meet the requirements through different ways: Samsung and Xiaomi have established manufacturing facilities, while Apple has chosen to open developer academies since 2018.
Apple investment deficit
“Apple’s iPhone 16 cannot be sold in Indonesia yet because the TKDN certification extension is still pending, awaiting further investment from Apple,” Industry Minister Agus Gumiwang Kartasasmita said. The company invested only 1.48 trillion rupiah (95 million US dollars) out of the 1.71 trillion rupiah it promised in Indonesia.
Now, recent reports suggest that Apple has proposed a US$10 billion investment to produce additional goods in the country, as it seeks to overturn the ban.
Google compliance issues
Following the iPhone ban, the Ministry of Industry announced that Google Pixel phones will also be restricted until they comply with local content rules. “The local content rule and related policies are designed to bring justice to all investors who invest in Indonesia,” ministry spokesman Febri Hendry Anthony Arif stressed.
While the ban affects two major global technology brands, Apple and Google do not rank among the top five Indonesian smartphone manufacturers in the country.
There may be hope for a solution, especially for Apple. During the CEO Tim CookDuring his visit to Jakarta in April, he discussed potential industrialization plans with President Joko Widodo. “We talked about the president’s desire to see industrialization in the country, which is something we will look into,” Cook told reporters after the meeting.
However, until the two companies adhere to local regulations, their latest devices remain unavailable to Indonesian consumers.
