Saturday, 18 January 2020 | 02:30 WIB

Indonesia‘s Electronics Industry Strengthens in Line with Investments

Indonesia's Electronics Industry Strengthens in Line with Investments (kemenperin)

JAKARTA, NETRALNEWS.COM - The electronics industry in Indonesia is believed to be increasingly strong in its manufacturing structure as new investors flow in to the segment. This increase in investments would not only spur domestic production capacity to meet domestic and export market needs, it is also expected to produce imported substitution products.

"We continue to boost this electronic industry to be able to play a significant role as a foreign-producing sector, and this sector has become a domestic-based industry," said Indonesia Minister of Industry Airlangga Hartarto in Jakarta.

The Minister of Industry revealed that one of the electronics industry investors who had expressed interest in investing in Indonesia is Compal Group. "Compal is one of the producers of Apple products such as the iPad and iWatch that will enter Indonesia," he explained.

Airlangga added, Compal was looking for a new location for its production base. One of the locations the company targeted was Indonesia. "They are studying again. In their exploration, they see new locations in ASEAN and will be interested in investing in Indonesia, "he said.

The Minister of Industry also welcomed the investment plan of the Compal Group. "With the tax holiday incentive facility that we offer, they are very interested in investing in Indonesia," he said.

According to the Minister of Industry, Compal currently produces a variety of electronic products and already has a large market. "They are manufacturers of iPad, Apple Watch and many other products. For the world market share it is close to 25% and they are producers of almost all mini notebooks, "he added.

In its development, the Compal Group became a manufacturer of 5C products such as notebook computers, tablets, wearable devices, and smartphones. In addition, they are trying to integrate their products into IoT applications to create smart houses, smart cars, and smart health care to become the best solution providers.

In 2007, they owned a factory in Vietnam, then had service centers in Poland and factories in Brazil. Compal has absorbed a workforce of 80,000 people worldwide. At present, Compal is supported by solid management and R&D.

The Director General of the Metal, Machinery, Transportation and Electronics Industry (ILMATE) Ministry of Industry, Harjanto said, Compal's intention to find a new production location was due to the impact of the China-US trade war, so there needed to be market diversification. "They see our domestic market is quite large. "If he enters, he will build a cluster with the vendor," he said.

According to Harjanto, in an effort to facilitate investment in the industrial sector entering Indonesia, the government continues to accelerate a number of industrial estate development that is integrated with supporting infrastructure such as ports. "This is so that it can be fast for the supply of raw materials," he said. Because, it will spur added value and competitiveness of domestic products in order to export.