The
Ministry of Industry is now considering five schemes for the 30% local content
regulation for the 4G LTE mobile phones (see the table below). Previously, the
local content regulation only consisted of manufacturing aspect and
R&D/software aspects with composition of 80% and 20%, respectively. The Indonesia
Association of Indonesia Telematics Devices Industry (AIPTI) has voiced its
opposition for the 100% software scheme (which would benefit Apple as it still
does not have manufacturing plant in Indonesia) because the 100% software
scheme will put mobile phone manufacturers which already setup their
manufacturing plants in Indonesia (such as Samsung) at disadvantage.
Figure: Five Schemes Proposed
by Ministry of Industry Regarding the 30% Local Content for 4G Mobile Phones
|
Hardware
|
Software
|
|
0%
|
100%
|
|
25%
|
75%
|
|
50%
|
50%
|
|
75%
|
25%
|
|
100%
|
0%
|
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