The new Blackberry Classic smartphone is shown during a display at the launch event in New York, in this Dec. 17, 2014 file photo. (Reuters Photo/Brendan McDermid)

Indonesia Plans to Raise Local Content Requirement for Smartphones

FEBRUARY 25, 2015

Kudus, Central Java. The Indonesian government wants to tighten its requirements for 4G-capable smartphones on sale in the country, proposing to demand that more than 40 percent of its parts are locally produced beyond 2017.

Communications and Information Technology Minister Rudiantara said the plan was meant to help boost the local smartphone industry industry and reduce Indonesia's dependency on imports.

The government previously set a 40 percent local content requirement by Jan. 1, 2017, but that percentage could now be raised.

“If the local producers are able to meet domestic demand for more local content, we will increase the [local content requirement]," Rudiantara said on Tuesday.

The minister did not elaborate but added that the Communications and Information Technology Ministry, the Industry Ministry and the Trade Ministry were discussing the details of the plan.

Rudiantara said Indonesia spends at least $5 billion (Rp 44 trillion) every year on mobile telecommunication technology from abroad.

Investor Daily