Foxconn started selling Luna in Indonesia

JAKARTA. After back and forth with the investment in Indonesia, Foxconn Technology Group finally started its business in Indonesia’s market. The Taiwanese company started selling smart phones in the local market under the brand of ‘Luna’.

According to the Chief Marketing Officer of PT ETI Luna Ratna Nina Wardhani, Foxconn deliberately formed this company in order to market the product in Indonesia. However, it is just not clear how much money placed by Foxxcon in PT ETI Luna Indonesia. It also remains unclear whether the company operates under the schemes of investment or equity, or operates merely as the assembling factory.

ETI Luna claimed that 20% of the components are locally made, while others are still imported from Foxconn. However, the portion for local components will be enhanced by 30% at the beginning of 2017. The enhancement aims at complying with the requirement of Domestic Content Value (TKDN), which will take into effect in 2017.

Luna will mainly target the segment of middle class, on the grounds that the middle class consists 41.1% of total market shares of cellular phone. “We have seen that the segment of middle-high class is increasing, thanks to the improvement in people’s purchasing power,” Nina said.

As the sales will just start at the beginning of 2016, Nina did not set a grandiose target. She projected that ETI Luna Indonesia may sell up to 30,000 units of cellular phones by the end of 2016.

ETI Luna Indonesia will just speed up sales in 2017. Unfortunately, Nina has not yet specified the sales target in the next year. She mentioned that the target of business growth can only be determined one year after operation. However, Nina gave a clue that ETI Luna Indonesia aims at taking over about 5% of premium cellular phone market shares in Indonesia.

In order to achieve the target, Luna is trying to develop the new products with the more advanced specifications. The company targets to launch the new product in the first semester of 2017.

Currently, PT ETI Luna Indonesia has established assembling factory in Semarang (Central Java). Unfortunately, Nina did not provide detail information about the production capacity of the factory, as well as the investment value of the factory. However, it is confirmed that Foxconn will directly monitor the production process at Luna’s factory in Semarang. Nina expects that the monitoring will accelerate the transfer of technology. (Translator: Muhammad Farid)