Indonesia is one of the world’s largest phone makers. They’re quickly 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.

Several factors help Indonesia’s desirability. For example, Indonesia’s cost of labor is low compared to the rest of the the region. 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. This will make things easier for manufacturers and help support the already robust 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 which are focusing more on Indonesia.


International Brands Opening Indonesia Factories


1. Oppo

Chinese-based Oppo is attacking the Indonesian market very aggressively. The company invested US$30 million to buy an old factory and revamp it into an assembly plant.

The facility will become Oppo’s first outside China and they plan to assemble 500,000 smartphones per month at the facility.


2. Haier

Haier is another Chinese company. The business is known as a home appliance brand in mainland China, but it’s more focused on smartphones in Indonesia. Haier is also one of the manufacturers of phones for local brand Smartfren Andromax.

Haier also invested US$800,000 to expand the production line in its existing Indonesia factory. They will soon assemble 200,000 smartphones every month.


3. ZTE

ZTE is yet another Chinese manufacturer that supplies smartphones to Indonesian brands. Some of their products include the Smartfren Andromax series and the Bolt Power phone.

The business claims that Indonesia is its biggest market. ZTE plans on investing heavily and will build a smartphone factory near the airport in Jakarta.


Local Brands Opening Indonesia Factories


1. Polytron

A firm known in Indonesia for producing electronic goods such as radios, speakers, and refrigerators, Polytron joined the mobile phone business in 2011. They already have three existing factories.

However, Polytron 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.


2. Evercoss

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.

Not all of them are manufactured in Indonesia at the moment, but Evercoss is in the process of setting up another factory near their current one.

Besides Indonesia, the brand plans on selling phones in other countries throughout the ASEAN region.


3. Advan

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,

They’re 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.

Advan will also start producing more smartphone components. They have a goal of becoming independent from Chinese sourced parts.

Want to invest in Indonesia, but aren’t a large company with enough money to start a factory? You might want to see our guide to buying Indonesia property.


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About Reid Kirchenbauer

Reid Kirchenbauer is the Founder of InvestAsian. He's an international stock trader and property investor based in Thailand, Cambodia, and several other places. Reid manages the world's first and only frontier market real estate fund and has been featured in publications such as Forbes, Property Report, the South China Morning Post, and Seeking Alpha. You can download his free investment guide by clicking here.

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