Asus Builds Smartphone Assembling Factory in Batam

Accommodating the government’s latest regulation on level of local components in local devices, Taiwanese Asus partners with PT Sat Nusapersada collectively established an assembling factory in Batam. The factory is projected to produce up to 200.000 units in a month.

Citing a report by Republika Online, Asus is reportedly ready to serve two production lines with capacity as big as 150.000 to 200.000 units per month with up to Rp 20 billion-worth investment. The scheme is supposedly enough to meet the local market’s demand.

“There has been a confirmation stating that the confirmation will be started in May 2015 with 40 thousand units of smartphone, followed by th eproduction of other 40 thousand units in June 2015 and 60 thousand units in July 2015,” stated The Ministry of Industry’s Director of Telematics Electronics Industry of IUBTT Directorate General Ignasius Warsito couple of days ago (24/4).

In regard to the partnership with Sat Nusapersada, Asus is of the belief that the company is one of the most prominent electronic manufacturing services (EMS). Tribun News reported that the local company gets involved in the production of Sony and Panasonic devices. Pretty soon, Asus’ flagship, Zenfone 2, will be produced in Batam.

A couple of other smartphone vendors have also applied such scheme in the past year. Oppo, Asiafone, Polytron, and Huawei raced in establishing their production factories in Indonesia. This is due to government’s regulation which enforces local electronic devices to contain at least 40% of local components.

Another factor that drives the establishment of factories in Indonesia is the Ministerial Decree number 82 year 2012 which regulates cellular devices import. In this regard, importers who have yet possessed any factory in Indonesia by the end of 2015 will have their importing license being abolished.