Indonesia Government intends to block the distribution of illegal phone

The Government intends to block the distribution of illegal phone through IMEI activation. Trade Minister Gita Wirjawan has summoned the leaders of PT Telekomunikasi Cellular, PT Indosat Tbk (ISAT, Rp4.850), and PT XL Axiata Tbk (EXCL, Rp4.625) related to this plan, given the predicted 28% of the total 250 million active mobile phone is illegal goods.

Mobile operators agreed and the possibility of new regulations implemented one year ahead, including making preparations. The government has shown its intention to reduce the illegal distribution of mobile phone working with importers and distributors, including the implementation of regulations on the import of mobile phones mid-March.

However, the results of this policy are still disappointing, considering to the increasing number of illegal mobile phones in May-June. IMEI activation registration plan also positive for the industry, especially against distributors such as PT Erajaya Swasembada Tbk (ERAA, Rp2.725, BUY, TP Rp3.875) and PT Tiphone Mobile Indonesia Tbk (TELE, Rp630, BUY, TP Rp810). (Bisnis Indonesia)

for Indonesia Market Summaries