Samsung Mobile Phone Factory in Indonesia Possibly Realized by the End of the Year

Indonesia is back with another one of the largest technology product manufacturers in the world. After early 2014, a Taiwanese company, Foxconn confirm the opening of the factory in Indonesia, although the realization awaits the new government, now the South Korean mobile phone manufacturing giant Samsung is reportedly interested in taking the same step.

As quoted from the news The Jakarta Post Saturday (16/8), Minister of Industry MS Hidayat revealed that this year, Samsung is expected to open a factory in Indonesia soon. “Samsung plans to come this year. I've been asked not to go into more detail, but they definitely come," he said.

The same thing seems to have been expressed by the president-elect Joko "Jokowi" Widodo, who is currently still serving as the Governor of DKI Jakarta. The figure who also plays a role in the memorandum of agreement cooperation between Foxconn and the DKI Jakarta Provincial Government This had revealed plans to open a Samsung mobile phone factory at the end of 2014.

“During the meeting, the South Korean Ambassador talked about Samsung's expansion plans in Indonesia. In December, Samsung plans to start building its mobile phone factory in Indonesia," said Jokowi through the same source.

In response to this information, Samsung Indonesia itself has not been able to provide more information. "The expansion plan is currently under further processing from the government, we can't tell you exactly when the month will be," commented Lee Kang Hyun, Senior Executives Samsung Electronics Indonesia rejected the information submitted by the government.

Indonesia seems to be a "second tier" production area by Samsung, after previously Vietnam, which was previously trusted by Samsung as a production center area for the Southeast Asian market. In fact, the tax-free policy implemented by the Indonesian government only provides incentives for 10 years compared to Vietnam, which dares to apply a tax-free policy for 30 years.

Even so, the presence of a Samsung mobile phone factory in Indonesia can still contribute positively to the foreign investment climate in Indonesia. The presence of Samsung can also be a trigger for local manufacturers to continue to spur production that is increasingly independent, as recently announced by local mobile phone manufacturer Evercoss which targets production. one million smartphones per month with the establishment of a mobile phone assembly plant in Semarang, Central Java.

As one of the Android phone manufacturers that has a wide market segment, the plan to open a Samsung mobile phone manufacturer in Indonesia could be Samsung's effort to improve its market share, which was last reported. starting to decline in the Indonesian market throughout 2014.

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