Of the 45 million cellphones distributed in Indonesia last year, around 9 million were illegal cellphones brought into the country through unofficial channels.
By
·4 minutes read
JAKARTA, KOMPAS – Of the 45 million cellphones distributed in Indonesia last year, around 9 million were illegal cellphones brought into the country through unofficial channels. In addition to causing trillions of rupiah per year in economic losses, the circulation of black market cellphones also threatens the domestic mobile industry.
A journalistic investigation in August 2019 by the Kompas daily reveals the intricacies of the illegal mobile phone trade in Indonesia, the channels used to smuggle mobile phone and how traders deal with the government’s plans to block illegal mobile phones through the international mobile equipment identity (IMEI) number.
The IMEI is a unique 15-digit serial number that identifies a mobile device, and is usually printed on a sticker adhered to the back of the original box. It can also be found under the phone’s menu settings. Black market phones do not have an IMEI number.
An investigation into cellphone trade centers in Jakarta, Bandung and Batam found many black market cellphones are still being sold freely, despite the police crackdown on smugglers. The illegal mobile phones can be identified through the fake warranty the seller offers, the lack of a certificate and the absence of the IMEI number.
The IMEI of black market cellphones can be easily switched with an “IMEI zombi” at an electronics trade center.
Unlike the officially distributed phones, smuggled phones only have guarantees that are issued by the seller. If the phone is damaged during the warranty period, repairs and replacement services can be obtained only through the seller or illegal distributor.
Blocking phones
To stem the illegal trade, the government plans to block cellphones that do not have an IMEI number registered on the national IMEI database (Sibina).
The plan to block mobile phones with unregistered IMEI numbers is stipulated in the draft Communication and Information Ministerial regulation on Limiting Access to Mobile Telecommunications on Telecommunications Equipment and/or Devices. The draft regulation was formulated in cooperation between the communication and information, industry and trade ministries.
Ironically, several ways of getting around the planned policy have emerged even before the regulation’s issuance. One of these is to switch the IMEI number of an illegal cellphone with the IMEI number of a legally distributed cellphone that has been bricked, locally known as “IMEI zombi” (zombie IMEI). This way, a black market phone can still have a registered IMEI that can be checked on the government database (https://imei.kemenperin.go.id).
The IMEI of black market cellphones can be easily switched with an “IMEI zombi” at an electronics trade center.
In mid-August, Kompas found a brand-new illegal cellphone without a registered IMEI number at a cellphone shopping center in Bandung, West Java. K, a cellphone technician, can assign an IMEI number to the phone within two hours.
Aside from using "IMEI zombi", illegal mobile phone traders also purchase the registered IMEI numbers of legally sold cellphones.
K said he charged Rp 150,000 for the service. His customers were generally black market cellphone traders.
The service, which is referred to as “menembak IMEI” (discharging the IMEI), was also available at a cellphone shopping center in West Jakarta.
Aside from using "IMEI zombi", illegal mobile phone traders also purchase the registered IMEI numbers of legally sold cellphones. Their trick is to obtain the IMEI from an individual who has access to the national IMEI database.
Sutikno Teguh, a former cellphone trader, revealed that around 3,000 IMEI numbers had been sold for Rp 50,000 each in early August. The numbers sold out almost immediately.
Hansen Lie, a director at Mito-brand cellphone manufacturer PT Maju Express Indonesia, cellphone manufacturers must first purchase IMEI serial numbers from the trade association Global System for Mobile Communications Association (GSMA) before commencing production. It cost around US$200 to purchase 1 million IMEI numbers, or about Rp 2.84 for each serial number.
According to Setyo Handoyo Singgih, the acting Presidium chairman of the Indonesian Information and Technology Industry Association, two groups had direct access to Sibina: Importers and distributors registered with the trade and the industry ministries, and industry ministry employees who inputted the IMEI numbers into the national database
APSI estimated that 9 million illegal cellphones were in circulation across the country in 2018.
Indonesian Cell Phone Association (APSI) deputy chairman Syaiful Hayat said that APSI had been supporting the policy to ban cellphones without registered IMEI for the last three years, as a means of controlling the illegal cellphone trade. APSI estimated that 9 million illegal cellphones were in circulation across the country in 2018.
Industry Ministry director general of metals, machine, transportation and electronics industries Harjanto said that the government was holding a series of meetings to discuss the policy on blocking cellphones with unregistered IMEI numbers. He promised that the government system would be able to anticipate any leaks of IMEI numbers.