What's happened
Indonesia has prohibited the sale of Apple's iPhone 16 and Google's Pixel smartphones due to non-compliance with local content regulations requiring 40% of components to be sourced domestically. This move aims to protect local manufacturers and attract foreign investment, impacting major tech companies in the region.
Why it matters
What the papers say
According to the South China Morning Post, the Indonesian Ministry of Industry stated that Google and Apple's products did not meet local content requirements, leading to the bans. Febri Hendri Antoni Arief emphasized the need for fairness among investors. The Guardian noted that Apple had not fulfilled its investment commitment, which was crucial for obtaining certification. Business Insider UK highlighted that while older Apple products can still be sold, the iPhone 16's entry into the market is restricted, reflecting the government's push for local manufacturing. This regulatory environment poses challenges for foreign tech companies looking to expand in Indonesia.
How we got here
Indonesia's Ministry of Industry has enforced local content regulations to bolster domestic manufacturing. Apple and Google have faced challenges in meeting these requirements, leading to recent bans on their latest smartphone models.
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