Indonesia introduces new rules to curb illegal smartphone imports
Indonesia has issued a new regulation requiring all smartphones stamped with a unique international mobile equipment identity (IMEI) to be registered on the government database in an attempt to curb illegal smartphone imports.
Jakarta (VNA) – Indonesia has issued a newregulation requiring all smartphones stamped with a unique international mobileequipment identity (IMEI) to be registered on the government database inan attempt to curb illegal smartphone imports.
The regulationwill come into effect on April 18 next year, Communication and InformationTechnology Minister Rudiantara said on October18. Underthe regulation, local mobile operators will deny services to all unregistered devices.
The Communication and Information TechnologyMinistry, the Industry Ministry and the Trade Ministry have workedtogether to integrate their rules in an effort to ensure thegovernment does not lose tax revenue from cellphone sales, Rudiantara told Antara News.
Users will still be able to usecellphones that have already been activated before the regulation comesinto effect. The government has set up a website to allow people tocheck whether their devices are registered with an IMEI or not.
Since last year,Indonesia has successfully forced manufacturers to start assembling theirsmartphones in Indonesian factories using locally made components.
Smartphone giantsSamsung, Apple, Xiaomi and Oppo had little choice but to comply withthe government's request since all of them want a slice of the hugeIndonesian smartphone market, currently estimated to have more than 171 millionmobile internet users.
However, lax border control isallowing illegal and cheaper smartphones to continue to flood thecountry's black market, undermining the manufacturers' investments.
A government estimation says one infive smartphones in Indonesia is illegal.
While the government currently doesnot slap import taxes on smartphones bought overseas, people buyingthem still need to pay a value-added tax of 10 percent and a deductible incometax of 7.5 percent according to customs regulations./.
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