The Indonesian government is considering imposing higher taxes on 2G handsets to help stimulate migration to smartphones and 4G.
The Indonesian Cellular Telecommunications Associations (ATSI) has issued proposals including increasing the tax on 2G handsets or cutting taxes for smartphones, the Jakarta Postreported.
Reducing the price difference between feature phones and smartphones is expected to stimulate adoption of the latter and drive up 4G subscriptions.
The communications ministry has welcomed the proposal and brought it to the finance ministry for consideration, the report states.
Communications minister Rudiantara expects the price of entry-level 4G smartphones to shrink to around 400,000 rupees ($30) in the next three to four years.
At present only around a quarter of India's population are smartphone users, but through the proposed tax regime changes, the ministry hopes that the majority of Indonesian mobile users will adopt 4G-ready devices in the next three to four years.
Indonesia's incumbent operators Telkomsel, XL Axiata and Indosat launched LTE services last year, but have argued that 4G adoption will only be successful if affordable handsets reach the market.