Four Global Smartphone Makers to Open Factories in RI

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    TEMPO.CO, Jakarta – Four global smartphone makers will operate their factories in Indonesia as the government plans to increase local industrial content (TKDN) of smartphones.

    “Several vendors plan to open factories in Indonesia, including ASUS, Huawei, Lenovo and Xiaomi,” said Ignatius Warsito, the director of electronics and telematics of the Directorate General of Technology-based Mainstay Industries, in Jakarta recently.

    Ignatius said these vendors should begin manufacturing their smartphones in the first quarter of 2016 to abide by the TKDN regulation, which according to plans would take effect beginning 2017.

    Earlier, South Korea tech giant Samsung through its subsidiary PT Samsung Electronics Indonesia (SEIN) kicked off its factory’s operation in the country early this year.

    Ignatius said Samsung had begun production in Indonesia since February 2015, and that the semi-knock down factory had manufactured around 1.4 million units monthly ever since.

    “The 4G content has also increased to 30 percent,” he said. Besides Samsung, China-based smartphone maker Oppo through PT Indonesia Oppo Electronics has also opened its factory in Indonesia, producing around 500,000 units per month.

    Explaining on the TKDN regulation, Ignatius said three ministries were presently preparing a joint circular that would be completed in early June. “The Communication and Information Ministry is working on the TKDN application, the Industry Ministry on the calculation, and the Trade Ministry on its realization,” he said.