The Ministry of Industry
ensures support for the steps of the Ministry of Communications and Information
Technology who has set the rules regarding Local Content (TKDN) in the
manufacture of 4G device. Local content in 4G devices to reach 30 percent effective
January 1, 2017. The regulation on Technical Requirements of Telecommunication
Tools and Equipment Based on Long Term Evolution Technology was signed by
Rudiantara, Minister of Communications and Information Technology in Jakarta,
on Monday (July 6). The signing was done after a coordination meeting is held
with the Minister of Industry, Slaeh Husin, and trade Minister, Rachmat Gobel.
“The support we provide is in the form of revision of
Regulation of Minister of Industry No.69/2014 to support this policy, “said
Industry Minister, Saleh Husin, after holding the coordination meeting. He
added that later, calculation of Local Content (TKDN) for smartphones is not
only about the hardware, but also the software. The end goal is to reduce
imports of smartphones, which have entered Indonesia.
“In 2012, Indonesia imported 70 million units of
smartphones and in 2014 we scaled it down to 54 million units. So it’s down
about 23 percent, and in the future we will continue to lower it down, “he
said. Besides, there are already 16 brands of phones assembled in the country
that has met 20 percent local content. Those brands are Polytron, Evercross,
Advan, Axio, Mito, Gosco, SPC, Asiafone, Oppo, Haier, Huawei, Smarthfren, Bolt,
Ivo, Lenovo, and Smasung. Total production capacity reached 23.02 million units
per year.
Application Designers
Saleh husin is also confident in the ability of
Indonesia’s young generation to cultivate the development of smartphone
applications that can contribute to the improvement of local content. “It’s
also a good chance that application designers, who are still in school and
collage as well as young professionals, have the opportunity in this giant
industry,” said Saleh.
Director General of Metal, Machinery, transportation
Equipment and Electronics of the Ministry of Industry No.69/2014 is carried out
by calculating the software and creative components. “The revision is performed
gradually according to the needs of the partners of the Ministry of
Communications. Now they must immediately release the use of local
content-based 4G LTE, “he described.
The Ministry of Industry said that the revision of
Regulation of the Minister of Industry No.69/2014 only contains general
regulations related to local content for electronics and telematics industry,
and calculation details (technical guidelines) will be regulated in Regulation
of the Director General of Metal, Machinery, Transportation Equipment and
Electronics. Besides, the revised regulation which is issued on the first
occasion is the transition rules for the validation of local content
certificate that has been verified by an independent surveyor.
“The next thing to be done is to accommodate the business
model of information and communication technology based on software or design
house. The Ministry of Industry will conduct a study within the next six
months,” said Putu.
Three ministries
After the signing, the minister of Communication and
Information, Rudiantara, said that the decision is the joint work of three
ministries, namely the Ministry of Communication and Information Technology,
the Ministry of Trade, and the Ministry of Industry. “The reason is because the
stipulation and oversight of this policy should be carried out together. It
also shows that the three ministries go hand in hand, so it always shows a
close coordination, “he said.
He added that while waiting for the implementation in
2017, regulations that are more technical will be issued through a joint
circular of the three ministers. As for the potential of added value targeted
by this policy is quite large, considering that Indonesian smartphone imports
reached USD 3.5 billion. “Even if the illegitimate ones are taken into account,
the value reached USD 4 to 5 billion,” he said.
The rules on local content were applied to 4G device with
Long Term Evolution Frequency Division Duplexing (FDD LTE) technology. While,
local content for 4G device with LTE-TDD technology may come info force in
2019. (E)
Business News - July 8, 2015
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