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Samsung’s Assembling Factory in Cikarang Got Inaugurated

Prayogo Ryza - 18 June 2015

PT Samsung Electronics Indonesia, one of phone vendors with most users in Indonesia, has just inaugurated its manufacturing factory located in Cikarang, Bekasi, West Java. The inauguration was attended by the Ministry of Industry Saleh Husin.

This might be a new solution to suppress the import of foreign phones, which has extended up to the number of 54 million units in a year. The establishment, according to Husin, also shows that Indonesia is one of appropriate locations to invest.

“This will encourage the growth of supporting industries like cellular component. Samsung covers 40 percent of smartphone market in Indonesia. By establishing its factory here, the number of import can be suppressed,” he stated.

“Hence, the level of local component keeps increasing thus making Indonesia as Samsung’s global production base, not merely as a market,” he added.

The factory is projected to be able to assemble up to 1,5 million units of smartphone, feature phone, and tablet computer in a month. The Minister, as cited from CNN Indonesia, also expected that Samsung’s commitment in Indonesia is carried on to the level of Completely Knock Down (CKD) and Surface Mount Technology (SMT).

About the level of local component, which is one of factors that encourage Samsung to establish its own factory in Indonesia, Saleh Husin revealed that this factory has met the requirement of 20 percent of local component, with the percentage is expected to reach 30 percent by 2017.

Regarding the inauguration, Samsung Electronics Indonesia’s VP Director Lee Kang Hyun, who attended the event as well, stated that this factory is a token of Samsung’s commitment in Indonesia.

“This factory strengthens our investment commitment in Indonesia,” Hyun emphasized.

Besides being projected as an active contributor to the trade of phones in Indonesia, the factory is also expected to hire tons of human resources, as the 6000 square meter-sized factory is estimated to absorb no less than 1100 employees.

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