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

 In January 2015, the Indonesian Minister for Communication and Information Technology, Rudiantara, has repeatedly mentioned in the media that his ministry is working on a new regulation requiring 40% of each 4G telecommunication device (i.e. smartphones and tablets) sold in Indonesia to be produced locally. According to media reports, the regulation is due to be finalized by March 2015.
As cited by Indonesian newspaper Republika, Rudiantara said that companies not fulfilling the 40%-LCR will be denied import licenses by the Trade Ministry.
The two largest companies affected have either recently opened a factory in Indonesia (Samsung Electronics) or are negotiating an investment with the government (Apple's supplier Foxconn).
The regulation would come into force on 1 January 2017.
 
Update:
On 4 July 2015, the Ministry of Communication and Information announced a regulation requiring 4G telecommunication devices to fulfill a local content requirement of 30%. Meanwhile, "base stations", e.g. wireless modems using 4G LTE networks will be required to have a local content requirement of 40%.
 
Update 2:
On 23 November 2015, one of the directors in Indonesia's Ministry of Industry was cited in the media saying that the local content requirement will hold not only for hardware but for software, such as phone applications, as well.
 
Update 3:
On 27 July 2016, the Indonesian Ministry of Industry issued regulation 65/2016 introducing further schemes related to the localisation requirement (cf. Related Measures).

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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