Lombok (IndoTelko) - Indonesian Telecommunication and Informatics Minister Rudiantara said to still apply the local content regulation on devices and 4G networks despite the United States (US) through the US Trade Representative (USTR) highlights the matter.
"They (US) can question the local content matter, it’s their rights. But Indonesia will still apply its regulation on local industry content (TKDN) regulation," said the minister in Lombok, Thursday (26/2).
Rudiantara said that Indonesia has the right to save foreign exchange by reducing the import of mobile phones in order to create a healthy trade balance.
"If the local content regulation applied, it would save Indonesia's foreign exchange about five billion US dollars. We also have the right to create healthy balance sheet, imported phones has made major deficit to our country," Rudiantara said
Currently, Indonesia is preparing the Minister's decree of local industry content regulation for 4G technology which will be issued later in the middle of 2015.
"We are just maturing the content's percentage. Currently the local manufacturing capabilities is only 20%, later we will revise the local content percentage annually," Rudiantara said.
Previously, the American Chamber of Commerce (AmCham) agency has written a letter to the Minister of Communication Rudiantara on February 12 regarding the local content regulation.
AmCham describe its concerns about the approach taken in the ongoing draft regulations on restricting access to new technologies would increases the local content cost for Indonesian companies, increase cell phones' black market and other consequences.
Chairman of AmCham Indonesia Lin Neumann said that Indonesia is in shortage of supply chain to produce high-quality phones.
AmCham also warns Indonesia about the rules local content regulation might be contrary to the international law under the auspices of the World Trade Organization (WTO).(es)