Actually, telecommunications is not a new thing for the people of Indonesia. Since the Dutch colonial era of telecommunications infrastructure (telephone and telegraph) was established and known in Indonesia (in 1884).
But since then until now, the fast-growing telecommunications business and developed almost 3 decades it has no significant positive impact for the national telecommunications industry. Until recently, almost no national company that is able to develop and make major telecommunications equipment (core network) such as switches and transmission. Even PT INTI who had worked with Siemens to make the switching devices in Indonesia, is currently not growing like ZTE or Huawei of China for example. Thanks to its cooperation with SIEMENS, PT INTI has experience in designing and making the switch, but because of government policy at that time of not siding with the national industry, PT INTI only be able to develop and make a switch capacity of the small number of 110 units. The same thing happened to Elektrindo Nusantara in cooperation with Alcatel.
There is cooperation-cooperation such as IMAGE AT and T and NEC NUSA, but for about a decade of existence, they were only able to perform activities (manufacturing) assembly only.
The more so since the mobile telecommunications system was introduced in Indonesia, until the total number sold is almost (or even more than) 200 million number, the national telecommunications manufacturing industry is only able to act as supporting industries only (there is also a role only as a spectator), such as the provision and installation of towers and subcontractors CME (civil, mechanical and electrical). The rest, the devices (active) primary in the MSC, BSC, BTS, microwave, until the handset, nearly 100% are imported products (with 0% import duty).
For that reason the government provides incentives (protection) for the telecommunications manufacturing industry (expanded into telematics) nationwide, which has the capacity for research and development and manufactures telematics devices, either actively or passively, in the form of preference of domestic products which are formulated in levels of domestic policy (TKDN) are arranged in Deperin No candy. 11 year 2006.
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