Indonesia is working to establish itself as a significant player in the global smartphone manufacturing industry, with notable progress in local production efforts. Based on information from Tempo, the country's ambitions are supported by the expertise of companies like PT Sat Nusapersada (Satnusa), a domestic manufacturer based in Batam. Satnusa has experience assembling and packaging smartphones for global brands like Honor and Motorola.

Deputy Minister of Industry Faisol Riza expressed confidence in Indonesia's potential to expand its telecommunications manufacturing capabilities. "The expertise demonstrated by Satnusa over the years builds optimism that Indonesia can further develop its industry in the telecommunications sector," Faisol said, according to his official statement.

The government is actively encouraging global smartphone manufacturers, including Apple, to invest in Indonesia. Faisol reassured potential investors of the country’s technological capabilities and skilled workforce. He also advised Satnusa to incorporate artificial intelligence and internet technologies to boost production efficiency in electronics.

The introduction of local content requirements (TKDN) has significantly impacted the domestic smartphone industry’s growth. Since the implementation of the 35% local content rule for smartphones, tablets, and handheld computers, production in Indonesia has grown. In 2023, local production of these devices reached 50 million units, while imports amounted to just 3.1 million units. As a result, nearly 94% of these products are now locally made.

Indonesia's export performance in the electronics sector has been robust as well. By the third quarter of 2024, electronics exports hit $10.07 billion. This was driven primarily by telecommunications devices, household electronics, and components. For smartphones, exports in 2024 amounted to $277 million. Samsung recently made its first smartphone export from Indonesia to the Philippines, sending the Galaxy A33 5G model. This shipment is an important milestone for the local industry.

Samsung Indonesia President SEIN-S Yoo Jung Young emphasized the company’s strategy to meet both domestic and international demand. "This is the first time [we’ve exported smartphones] to the Philippines," Yoo said.

The government plans to raise the TKDN requirement to 40% to further boost local manufacturing. Setia Diarta, Director General of ILMATE, noted that several companies, including Samsung, are prepared to meet this new threshold. "During recent discussions, vendors expressed their readiness as they can optimize several components for TKDN compliance," Setia explained.

By fostering expertise and attracting foreign investment, Indonesia aims to strengthen its position in the global smartphone production sector while expanding its domestic electronics industry.

PHOTO: SAMSUNG