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Indonesia's 'pro-Apple' local content rule irks smartphone rivals

Policy shift means the US tech giant can meet the quota with a smaller investment

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Muslim women take pictures of themselves with a Samsung's smartphone in Jakarta.   © Reuters

JAKARTA -- Another sudden regulatory change in Indonesia is baffling foreign companies, this time over the mandatory use of local components in fourth-generation smartphones sold domestically.

In 2015, the government said that all 4G phones sold in the country would need to contain 30% locally procured components by 2017. South Korea's Samsung Electronics and other foreign makers responded by investing in Indonesian assembly other plants to better tap the growing market.

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