INDONESIA will begin experiencing the benefits of its move last year to force smartphone manufacturers to assemble their gadgets in local factories using locally-made components, as a way of curbing the mobile phone black market.
Authorities last year also introduced legislation requiring all smartphones to be stamped with a unique 15-digit international mobile equipment identity (IMEI), which will be registered with a government database by April next year.
Under the latest rule, Indonesian telcos will be able to deny service to all devices not registered with the government database, said the Jakarta Globe.
The authorities have also set up a website allowing consumers to check whether their device has a registered IMEI or not.
According to the IMEI website, the unique identity number will also allow phone owners to keep track of their phones while they are being repaired.
1 in 5
To demonstrate how large the black market for mobile phones in Indonesia is, the government has estimated that one in five smartphones in the country is illegal.
Lax border control is allowing illegal – and cheaper – smartphones to flood the local market, thus undermining manufacturers' investment.
Communication and Information Technology Minister, Rudiantara, told Antara news agency that the regulation on the IMEI will come into effect on April 18, next year.
"I thank the three ministries that have worked together to integrate their rules. All of us are looking to ensure that the government does not lose any revenue from (fake) cellphone sales," he said.
Given that Indonesia has more than 171 million mobile internet users, smartphone giants Samsung, Apple, Xiaomi and Oppo willingly complied with the Indonesian government's request to use only locally-made components, as they all want a slice of the market.