Techno: Nokia to Build Factory in Indonesia

VIVAnews - Three cell phone manufacturers of global,

regional and local scales will build factories in Indonesia.

"One of them is Nokia," Director of Telematics of the Directorate General of Transportation Means Industry and Telematics at the Department of Industry, Ramon Bangun, told VIVAnews last week.

According to Bangun, Nokia of Singapore has conducted survey and observation of the business climate in Indonesia. "It's still at a very early phase" he said. Therefore, amount of investment has not been discussed.

Nokia of Singapore has requested data concerning the terms and conditions to invest in Indonesia. "They are in serious stage with regard to studying the governmental regulations," said Bangun.

Afterwards, said Bangun, Nokia of Singapore will discuss the results of its survey and observation with Nokia's head office in Finland. "They said they are interested in our conducive regulations," he said.

In addition to having interest in conducive business climate, Nokia is also intrigued by the large Indonesian market. "This year, it estimated that [the sales] will be between 15 and 20 million units," he said. By virtue of the large market, it will be easier for Nokia to distribute its products. "Transportation costs may be reduced because distribution processes to other regions are easier," he said.

However, Nokia's main reason to set up a factory in Indonesia is a policy on import restriction imposed through Trade Ministerial Regulation No. 60/2008 on Provisions of Certain Imported Products. As of 1 February 2009, importers of electronic products must both register as registered importer and carry out verification in the exporting country.

"It will certainly require additional costs," said Bangun. Therefore, he said. it will be better if the products are manufactured in Indonesia because the products have slight margin.

Translated by: Bonardo Maulana Wahono

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