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Facing unclear regulations, Xiaomi can’t guarantee the release of 4G smartphones in Indonesia

After the launch of 4G LTE mobile networks in Indonesia by three of the nation’s largest telcos, cheaper access to 4G should presumedly serve as a strong incentive for smartphone manufacturers like Xiaomi to sell compatible devices in the archipelago. But it’s not that simple for the company’s VP of international Hugo Barra, local media portal Detik reports. While Xiaomi plans to introduce the 4G compatible Mi Note to Indonesia during the second quarter of this year, the Chinese company still feels hesitant due to the archipelago’s unclear regulations, according to Detik. As Indonesia’s government believes that the nation imported too many goods last year, it’s possible that brands like Xiaomi might experience painful taxations from the government to sell their 4G devices inside the country. Local media portal Liputan 6 reports that three of Indonesia’s ministries have been in talks about regulating the sale of 4G LTE devices in Indonesia. The proposition that is arguably the most damning for Xiaomi is that 40 percent of all 4G mobile devices marketed inside the country should be manufactured inside the country, according to the Ministry of Information and Communication Technology (ICT). Indonesia’s ICT minister Rudiantara says the regulation will go into effect by 2017. In the meantime, this would allow Xiaomi to start selling 4G devices in Indonesia, but would create big problems for the company further down the line.