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China's Oppo Looking to Indonesia for Next Handset Factory

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The Chinese smartphone manufacturer, Oppo is reported to be interested in building a handset factory in Indonesia, an Indonesian government minister has revealed.

Industry Minister MS Hidayat told the Jakarta Post that the factory, the construction of which may begin "in the near future", would be located in West Java.

"They consulted us about their plans and also applied for a business permit to the Investment Coordinating Board [BKPM]," Hidayat told reporters.

The firm expected the Indonesian plant to also serve demand across Southeast Asia, Hidayat added.

President director of Oppo's Indonesian division, Jet Lee, said that the Chinese firm would confirm its investment plan after the presidential election, as it was waiting to see if there would be any policy changes that may potentially affect its business.

Oppo planned to produce between 5 to 10 million cell phones each year to serve the Indonesian market, according to Lee.

The Indonesian government had been trying to encourage handset factories to be set up in the country to stem the huge trade imbalance it has in telecoms equipment. The government raised taxes on consumer electronics earlier this year, and has been considering a smartphone tax on top of that to encourage local production.

The Industry Ministry's director general for high-technology priority industries, Budi Darmadi has previously said that they want to reduce imports by at least USD2 billion a year.

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Tags: oppo  Indonesia