Chinese Smartphone Giant Oppo Expands Indonesian Manufacturing to Tap into Southeast Asia Market
Oppo is increasing its sourcing from Indonesian suppliers to enhance global manufacturing capabilities. The company already exceeds Indonesia's 35% local component requirement for smartphone makers. Indonesia's ban on Apple's latest iPhone highlights the importance of complying with local regulations.
Jefry Firman de Haan, director of Oppo’s Indonesia Manufacturing Centre, revealed that around 36 to 37% of smartphone components used in the Indonesian factory are sourced domestically, including batteries, packaging materials, adaptors, and USB cables. This percentage surpasses Indonesia’s mandated threshold for smartphone makers.
Oppo is actively seeking additional local suppliers to enhance its component sourcing. De Haan stated, “We are looking for good suppliers for all of our components, and we communicate and cooperate closely with the Ministry of Industry and local governments to find the right suppliers and vendors for us.”
Indonesia recently prohibited the sale of Apple's latest iPhone due to non-compliance with the local component level policy. This move underscores the importance of adhering to regulations for tech companies operating in the region. Similarly, Google's Pixel phones faced a similar ban for failing to meet the required standards, indicating Indonesia's strict enforcement of localisation policies.
The Indonesian government's focus on boosting foreign investment in local manufacturing aligns with a global trend towards promoting domestic production. Countries like India have successfully implemented initiatives such as the "Make in India" campaign, significantly expanding their manufacturing capabilities over the years.
Oppo's recent launch of the Find X8 and Find X8 Pro in Indonesia marks a strategic move to reintroduce the Find X line to overseas markets after a two-year hiatus. This expansion signifies Oppo's commitment to tapping into the Southeast Asia market by leveraging Indonesia's growing economy and manufacturing potential.
Oppo is increasing its sourcing from Indonesian suppliers to enhance global manufacturing capabilities.
The company already exceeds Indonesia's 35% local component requirement for smartphone makers.
Indonesia's ban on Apple's latest iPhone highlights the importance of complying with local regulations.
Source: SCMP