IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2017 | Removal date: open ended
Still in force

Local sourcing

 On 27 July 2016, the Indonesian Ministry of Industry issued regulation 65/2016 updating the local content requirements on smartphones and tablets. The previous localisation requirement at 40% (cf. Related Measures) is planned to come into force on 1 January 2017.
The amendment does not strictly increase the local content requirements, as it offers different "schemes" for smartphone and tablet manufacturers to satisfy the provisions. It introduces the option to localise the software rather than the hardware components of the devices.
For instance under one scheme, creating a number of popular applications and games could reduce the hardware localisation required to 10% and the design and firmware localisation to 20%.
Also, the new regulation offers the reduction of the localisation restrictions depending on the size of foreign investment. In the case of investments worth at least 1 trillion IDR (ca. 77 million USD), the localisation requirement would be scrapped altogether.

Update on 13 July 2017

On 13 July 2017, the Ministry of Industry issued regulation 29/PER/M-IND/7/2017 (cf. Sources) replacing the previous regulation 65/2016. However, the changes in the regulation were minor and included in particular slightly adjusted local content valuations with respect to the individual parts of smartphones and tablets. Hence, this intervention continues to be classified as in force.

The new regulation came into force on 14 July 2017.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

452 Computing machinery & parts
8471 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included.
847130 Portable automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display
847141 Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined
847149 Other, presented in the form of systems
847150 Processing units other than those of subheading 8471.41 or 8471.49, whether or not containing in the same housing one or two of the following types of unit : storage units, input units, output units
847160 Input or output units, whether or not containing storage units in the same housing
847170 Storage units
847180 Other units of automatic data processing machines
847190 Other
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a lo
851769 Other
472 Television & radio transmitters; cameras; telephone sets
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a lo
851712 Telephones for cellular networks or for other wireless networks
851718 Other
851761 Base stations
851762 Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus
474 Parts for the goods of classes 4721 to 4733 & 4822
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a lo
851770 Parts

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