Indonesia's Ban on Google Smartphones Raises Protectionism Concerns

Indonesia has blocked the sales of Google's Pixel phones due to non-compliance with local manufacturing rules that require 40% of components to be locally sourced, following a similar ban on Apple's iPhone 16. The move, seen as protectionist, has stirred concerns among investors.

In a controversial move aimed at enforcing fair trade practices, Indonesia has banned the sale of Google's Pixel smartphones after the tech company failed to comply with local manufacturing rules. These regulations stipulate that 40% of smartphone components need to be produced domestically.

The announcement was made following a similar restriction placed on Apple's iPhone 16 just last week. Industry ministry spokesperson Febri Hendri Antoni Arief indicated that Google's non-compliance with these measures led to the ban, emphasizing the importance of fairness for investors in Indonesia.

The ban has sparked criticism from Bhima Yudhistira, director of the Center of Economic and Law Studies, who described the move as "pseudo" protectionism likely to deter potential investors and negatively impact consumer choice.

(With inputs from agencies.)