South Korean phone maker Samsung to start production of cell phones in Indonesia.
Samsung Electronics may start manufacturing cell phones in Indonesia by early 2015. It will be the first South Korean company to produce cell phones in the region. As per the Indonesian Ministry of Industry, the firm has set aside $20 million to develop one of the three planned phases of the manufacturing facility situated in Samsung’s Cikarang factory complex, West Java.
The ministry also stated that Samsung makes a sale of around 10 million feature phones and smartphones to Indonesia, sourced mostly from Vietnam. That amounts to $1 billion, which represents one-seventh of the country’s total gadget market.
The manufacturing facility is planned to produce around 800,000 units per month just for the domestic market, which will help in reducing the dependance of the country on phone imports by one-third of the above mentioned cost.
According to the Ericsson Mobility Report 2014 by Ericsson, Indonesia is predicted to have the third-highest number of new mobile subscriptions in 2019 at seven million, after India and China with 28 million and 19 million new mobile subscriptions, respectively.
Currently, cell phone production in the country is undertaken by domestic firms with phones and tablet brands such as Axioo and Advan. Global phone makers — Taiwan-based Foxconn and China-based Oppo — also intend to set up facilities here.
Photo Credits: Xinhua Net
