Indonesian government provide protection for the domestic mobile, computer and tablet industries, including to its users by regulated the International Mobile Equipment Identity (IMEI). Its also in line with efforts to suppress the entry of illegal cellphones into Indonesia which has the potential to cause state losses. The regulation will take effect in the next six months from the date it was signed.
According to ICT minister Rudiantara, Indonesia has lost over Rp2.8 trillion (US$198.58 million) amid the illegal mobile phone market. He also revealed that the losses was what drives him to sign a joint-ministry regulation.
Meanwhile, industry minister Airlangga Hartarto said that the government had never mandated a special tariff to protect the domestic industry as it has zero import duties. As of now, domestic and international mobile phones are only subject to a 10 percent value-added tax.