When it comes to investing in building a smartphone factory in Indonesia, there is one rule that must be followed: at least 35% of the parts used must be manufactured in Indonesia. This is the issue that led to iPhones and Google Pixels being banned from trade in Indonesia.
On the contrary, Oppo fulfills this requirement with approximately 36-37%. Information from the factory side indicates that Oppo purchases parts from suppliers in the country, including batteries, packaging, adapters, USB cables, and has plans to buy more components.
Oppo’s factory in Indonesia is located in Tangerang province, producing smartphones ranging from entry-level to flagship models. Operational since 2022, it covers an area of over 100,000 square meters and employs over 1,000 workers (99% of whom are locals). It is considered Oppo’s second largest overseas manufacturing facility after India.
The Oppo factory in Indonesia primarily focuses on producing for the domestic market. According to IDC data from the last quarter, Oppo held the top market share in Indonesia with 19%, followed by Transsion and Samsung.
Source: SCMP
TLDR: Investing in smartphone manufacturing in Indonesia requires a minimum of 35% of locally produced parts. Oppo’s factory in Tangerang is the second largest overseas manufacturing facility for the brand and dominates the Indonesian market with a 19% share.
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