Indonesia is one of the world’s largest phone makers – and is becoming one of the biggest consumers of them too. eMarketer says the country will have over 100 million active monthly smartphone users by 2018, making it the fourth largest market in the world. Because of this, Indonesia factories are desirable for phone manufacturers.
This is being helped along by several other factors. The cost of labor in Indonesia is low compared to the rest of the the region. For example, the annual minimum wage is only US$1,163 compared to US$2,472 in China. On top of that, the government is removing a lot of regulatory barriers for businesses which will make things easier for manufacturers and help support the Indonesian economy.
Many different local and international companies have begun operating in Indonesia over the past few years, while more are planning to do so. These range from component manufacturers to actual smartphone brands. Here’s a list of the three largest local, as well as the three largest multinational players that are focusing more on Indonesia.
International Brands Opening Indonesia Factories
Chinese-based Oppo is attacking the Indonesian market very aggressively. The company has put in US$30 million to buy an old factory and revamp it into an assembly plant. The facility, which will become Oppo’s first outside China, is located in Tangerang, just outside of Jakarta, and will open in the middle of 2015. The company plans to assemble 500,000 smartphones every month.
Haier is another Chinese company. The business is mostly known as a home appliance brand in mainland China, but is more focused on smartphones in Indonesia. Haier is also one of the manufacturers of phones for local brand Smartfren Andromax.
Haier has invested US$800,000 to expand the production line in its existing plant in Indonesia. The facility will soon assemble 200,000 smartphones every month.
ZTE is yet another Chinese manufacturer that supplies smartphones to Indonesian brands. Some of its products include the Smartfren Andromax series and the Bolt Power phone. ZTE claims that Indonesia is its biggest market and plans to invest heavily by eventually building a smartphone factory near the airport in Jakarta.
Local Brands Opening Indonesia Factories
A firm that is known in Indonesia for producing electronic goods such as radios, speakers, and refrigerators, Polytron joined the mobile phone business in 2011. While the firm already had three existing factories, it still sourced phones from Chinese manufacturers at that time.
Then in December of 2013, Polytron decided to use one of its own plants to produce its feature phone lineup. Recently, Polytron set a goal to produce 100,000 phones every month from its factory in Central Java.
Evercoss’ factory in Central Java began operations in June 2014. They make 1,500 smartphones, 1,500 tablets, and 2,500 feature phones each day, and while not all of them are manufactured in Indonesia at the moment, Evercoss is in the process of setting up another factory close to their current one.
Besides Indonesia, the brand plans to sell phones in other countries throughout the ASEAN region.
Advan has a well-established factory in Semarang which produces LCD screens, notebooks, and PCs. In addition to the US$80.7 million the company used to create a 3,000-square-meter factory, Advan is now pouring in another US$8.1 million to expand its production capabilities to smartphones and tablets.
Advan’s goal is to assemble 25,000 smartphones and 25,000 tablets every month in 2015. The company expects to start producing more smartphone components as well, and become independent from Chinese sourced parts by 2016.