Govt Protects Cell Phone Industry and Consumers with IMEI Regulation

Jakarta, InfoPublik—Industry Ministry, Communication and Informatics Ministry, as well as Trade Ministry are finalizing the regulation on IMEI (International Mobile Equipment Identity) number database validation which is targeted to be finished by 17 August 2019.

“17 August 2019 will be the milestone for the signing of the regulation on IMEI control by the three ministries to eradicate illegal cell phones,” said Industry Ministry’s Industry, Electronics, and Telematics Director Janu Suryanto in Jakarta, Sunday (7/7/2019).

According to Janu, IMEI control system is essential to protect local industry and consumers. Therefore, Industry Ministry has initiated such program in 2017. In this regard, identification, registration, and blockage of cellular telecommunication equipment not complying with the regulation is necessary.

With the IMEI control system in place, cellular phone industry can be protected from unhealthy competition resulted from illegal circulation. In addition, it is expected to decrease theft crime rate and protect user. Janu also explained that the IMEI control was aimed at improving the quality of cellular telecommunication service and getting black market cellular phones off the market in order to increase the government’s tax potentials.

In order to support the IMEI control program, a regulation is needed for the management of IMEI data. The government will establish a regulation related to Information System for National Identification Registration (SIRINA). The Industry Ministry, in this case, will regulate the IMEI database, while Communication and Informatics Ministry is to regulate the use of IMEI and operator data.

Janu added that the IMEI control system will process the IMEI database obtained from various stakeholders, to process and generate information on valid IMEI list in accordance with the applicable law.

“Information on the valid IMEI list may be used by related government institutions to formulate policies in accordance to their respective authorities,” said Janu, adding that currently the IMEI data base or SIRINA has been installed at the Industry Ministry’s data and information center and officials of the Ministry have received trainings on its management.

Indonesia’s cellular phone industry has experienced a rapid growth of production within the last five years, resulted from the government’s efforts in boosting development in the telecommunication and informatics field.

The increase in cellphone production in Indonesia, among others, is due to the creation of a conducive business climate as well as downstream policies and optimization of local components so as to provide more added value, said Industry Minister Airlangga Hartarto.

The Industry Ministry noted that in 2013, mobile phone imports reached 62 million units with a value of US$3 billion. Meanwhile, domestic production of two local brands was only around 105 thousand units. Therefore, the government issued a regulation aimed at reducing imported products and encouraging domestic producers.

As a result, in 2014, cellphone imports declined compared to that of the previous year, to 60 million units. Meanwhile, domestic cellphone production grew significantly to 5.7 million units. In 2015, imported products dropped by 40 percent from the previous year, to 37 million units valued at US$2.3 billion, with domestic cellphone increased by 700 percent from that of 2014 to 50 million units from 23 local and international brands.

Imports on cellphone products continued to decline in 2016 by around 36 percent from the previous year, to 18.5 million units with a value of US$775 million. While domestic production increased by 36 percent from 2015 to 68 million units. The decreasing trend of imports on cellphone continued in 2017 to 11.4 million units, with domestic cellphone production rose to 60.5 million units from 34 brands, eleven of which were local brands, said Industry Minister.

The eleven local brands were SPC, Evercoss, Elevate, Advan, Luna, Andromax, Polytron, Mito, Aldo, Axioo, and Zyrex. These national products have strong branding for the lower middle and upper middle class markets.

Airlangga affirmed that the Indonesians should be proud of its national cellphone produced by domestic industries. In fact, the increasing national competitiveness will strengthen the positive image and popularity of these products in domestic and international consumers.
(Reporter: Baheramsyah, Translator: Penni Patmawati Rusman)