Samsung produces new flagship phones in Indonesia

JAKARTA. The new flagship smartphones from PT Samsung Electronics Indonesia (SEIN), the Galaxy S6 and S6 Edge, are produced in Indonesian factories in anticipation of a government regulation, the firm’s vice president for corporate business and corporate affairs, Lee Kang-hyun, said on Wednesday.

The Communications and Information Ministry previously said it was intending to issue a regulation to take effect this year requiring a minimum of 40 percent local content in all 4G handsets on sale in the country by 2017.

Samsung began production of its phones early this year in the company’s factory in Cikarang, West Java.

“The production cost is more expensive but we want to comply with the regulation,” Lee told the press at Raffles Hotel in South Jakarta on Wednesday.

Although the circulating information stated that the regulation would be enacted in 2017, Lee believed that it would start taking effect in May, with local content amounting to 20 percent, which would then be increased to 30 percent in 2017.

He reasoned that since the supporting industry for mobile phone manufacturing in Indonesia was still lacking, SEIN needed time to build supporting facilities and attract more investment.

Chinese smartphone maker Xiaomi and US giant Apple have stated their plans to set up local manufacturing facilities to boost the percentage of local content in their product.

Lee, however, jokingly questioned the Indonesian attitude toward local products.

“The S6 and S6 Edge are our latest and most sophisticated products, and they are produced here. But Indonesians don’t really like to buy locally made products,” Lee said. (fsu/nvn)