December 5, 2020

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Database System Among Regulations to Prevent Illegal Tech Devices in Indonesia

The Indonesian Government is determined to protect its domestic mobile phone, computer and tablet industry, including the users.

This is in line with their efforts to suppress the illegal entry of mobile phones into Indonesia, which may lead to potential state losses.

The Ministerial Regulations

As reported, three ministerial regulations were made to address this. These are:

  1. The Minister of Industry Regulation concerning the Mobile Telecommunications Equipment Identity Database System
  2. The Minister of Communication and Informatics Regulation on the Control of Telecommunication Tools and/or Devices Connected to Cellular Mobile Networks through International Mobile Equipment Identity (IMEI) Identification
  3. The Minister of Trade Regulation concerning the Amendment to the Regulation of the Minister of Trade No. 38 of 2019 concerning Provisions on the Instructions for the Use and Guarantee of After Sales Service for Electronic Products and Telematics Products

These ministerial regulations need the support of all the parties involved in order for the jointly planned program to run smoothly.

All of them share a common vision, which is to prevent the entry of illegal devices in the country in order to protect the domestic industry and provide it with high competitiveness as well as to optimise the state revenues in this sector.

The Minister of Industry hopes that with the implementation of the regulations, the electronics industry will continue to grow domestically and spur national production.

This will eventually lead to reduction in imported products.

Background of the Initiative

  • Based on the records of the Ministry of Industry, the Mobile, Computer and Table industry is considered to be one of the strategic sectors that shows an upward trend and contributes positively to the national economy.
  • 2018 data shows that the domestic industry produced 74.7 million units, which was a 23% increase from the 60.5 million units produced in 2017.
  • As for trade balance, the record export between January – August 2019 showed a positive trend with US$ 333.8 million, much higher than imports during the same period, which was valued at US$ 145.4 million.
  • The enactment of these regulations is urgent as the current estimated number of illegal mobile phones circulating in Indonesia has reached 9-10 million units per year.
  • It is feared that this may result in job losses and depreciation of factories and local components.

About the Initiative

  • The regulations were launched since the database system is ready and in place. It can check the available data, which are already in the hands of the Ministry of Industry.
  • More than 1.4 billion IMEI data have already been entered.
  • The system is safe and will not interfere with traders and users. Users include those who buy from within and outside the country, except for those who buy from the black market.
  • In order to secure all of this, the Ministry of Trade will regulate more technical matters such as requiring manuals in Indonesian.
  • If there are no labels and guidelines in the Indonesian language, the product would be suspected as a black market item.
  • The Minister of Communication and Information Rudiantara, meanwhile, emphasised that mobile phone users need not worry about the existence of IMEI regulations.