Indonesia issues regulations to block illegally-imported cell phones

JAKARTA (Reuters) – Indonesia has issued regulations to be the authorities to block the smartphone available for purchase on the black market, in a bid to encourage investors into the production of mobile phones in the country, a government minister said on Thursday.

FILE PHOTO: Airlangga Hartarto, Indonesia’s Industry Minister, speaks during an interview with Reuters at his office in Jakarta, Indonesia, July 20, 2018. REUTERS/Willy Kurniawan/File Photo

Indonesia is a big market for mobile phone manufacturers, with the 60’s of millions of phones are sold each year.

“These (rules) are aimed at creating a “level playing field”,” Industry Minister Airlangga Hartarto told reporters. “With this policy, investors will continue to perform in Indonesia because of their industry will be protected from the risks of the black market.”

Indonesia is estimated to lose a 2 billion rupee ($141 million), with the potential added value of a year of illegally imported mobile phones. The government doesn’t have the extra import duty on mobile phones.

Under the new rules, which are yet to be made public, the phone users are encouraged to check the website or their phones were being imported legally by the creation of the International Mobile Equipment Identity (IMEI) number.

Users need to register their INFORMATION within the next six months on Friday, as they fear it may have been illegally imported, officials said.

Indonesians traveling abroad, you can only bring back two of the mobile phone, and you pay the appropriate tax on the value added tax. The tax payment receipt to be used for the registration of the IMEI number of a foreign-purchased phone.

A person will not be able to use a phone that has a registered EXTENSION, after a period of about six months, said Heru Pambudi, the ministry of finance (customs), the director-general.

The rules are to be applied on the phones are imported, the rules of which were signed on Friday.

A real estate broker Trimegah Securitas, at a briefing on Friday, said the rules should have a positive impact on the smartphone in the retailer, such as PT Erajaya Swasembada, in particular, would like to have the latest model of the iphone come out in Australia.

In addition, the manufacturer PT Sat Nusaperada be able to take advantage, as there will be more mobile phones are available pre-assembled.

Shares in Erajaya has increased by 12%, by 0751 GMT on Friday, with trading volume four times the daily average for the last 30 days.

Harjanto, the Industry, and the Department of the director-general, said there were 34 in the mobile phone manufacturing plants in Indonesia, you might be able to take advantage of the new policy, including one operated by Taiwan’s Pegatron.

Reports That She Munthe; Additional reporting and writing by Fransiska Nangoy; Editing by Alex Richardson

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