Samsung opens cell-phone factory in Indonesia

JAKARTA. South Korean electronics giant Samsung Electronics Corporation has opened a new cell-phone factory in Indonesia, South Korean Ambassador to Indonesia Taiyoung Cho says.

Cho said Wednesday that the facility, developed with an investment of more than US$20 million, began operating last month.

"So they are now producing mobile phones in Indonesia," he said on the sidelines of a CEO gathering at the Investment Coordinating Board (BKPM).

The facility will be located at Samsung’s existing factory complex in Cikarang, West Java. It is slated to produce around 800,000 cell phones annually, Indonesian officials have said.

According to the Industry Ministry, Samsung delivers around 10 million feature phones and smartphones each year to Indonesia, most of which are sourced from Vietnam. The production is equal to US$1 billion and represents one-seventh of Indonesia’s total gadget market.

Samsung Electronics Indonesia vice president Lee Kang Hyun confirmed that the plant was already operating. He said that the factory would be officially inaugurated by high-ranking Indonesian officials within a few weeks. (Linda Yulisman)