Local application will be calculated as Smartphone`s DCL

Ilustrasi (dok)

JAKARTA (IndoTelko) - The Indonesian government will calculate the pre-installed local application components as one of the Domestic Content Level (DCL) in 4G smartphones.

"There is a discourse to submit the pre-installed local applications that are widely used as one of the calculation component in smartphone's DCL. But the Ministry of Industry is the one who own the calculation formulation. I will support it if its needs to be carried out, “said The Indonesian Communication and Information Technology Rudiantara.

According to the minister, calculating the local application is bundled with smartphones as one of the DCL component is a natural thing if it can stimulate the Indonesian economy.

"The DCL regulation is to encourage the local production and economic activities. If the local applications can encourage the economic activities then why shouldn't it be included? We leave the calculations to the Ministry of Industry," Rudiantara said.

Earlier in July, the Government through the Ministry of Communications and Information Technology, Ministry of Trade and Ministry of Industry has finally set the minimal DCL limit in 4G smartphones in 2017 by 30%.

The Ministry of Industry is revising the Ministerial Regulation's (PM) No. 69 Year 2014 Concerning the DCL Calculations Procedures by incorporating the software elements. Currently the DCL calculation level is only 20% simply by the hardware or cost to make.

Within six months the Ministry of Industry will arrange guidelines for the classification criteria of the manufacturer/manufacturing and design houses, these guidelines will be used to determine the DCL value provision for investors.

Based on the initial plan that the calculated DCL in Smartphone consisting of licenses, firmware, industrial designs and layout design to development. On the manufacturing side are the material, labor, and overhead.

Director General of Metal, Machinery, Transportation and Electronics Equipment of the Indonesian Ministry of industry I Gusti Putu Suryawirawan recognized that the local software content will be accelerated after the 30% hardware DCL for smartphones in 2017 is carried out. (es)