ANNOUNCEMENT 01 Jan 2017In January 2017, the government of Indonesia announced a change in the required local inputs to serve domestic customers.
NUMBER OF INTERVENTIONS
Regulation draft (in Bahasa Indonesia):
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.
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%.
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.
On 27 July 2016, the Indonesian Ministry of Industry issued regulation 65/2016 introducing further schemes related to the localisation requirement (cf. Related Measures).