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Chinese smartphone maker Oppo to boost Indonesian manufacturing by betting on Southeast Asia
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Chinese smartphone maker Oppo to boost Indonesian manufacturing by betting on Southeast Asia

Chinese smartphone manufacturer Oppo is looking to increase its sourcing from Indonesian suppliers at its local factory in a bid to strengthen its global manufacturing capabilities, amid a shift in many economies encouraging greater localization.

About 36% to 37% of the smartphone components Oppo buys for its Indonesian factory in Tangerang come from domestic suppliers, including batteries, packaging materials, adapters and USB cables, according to Jeffry Firman de Haan, director of the center of Indonesian manufacturing from Oppo.

The proportion of parts places it slightly above the 35 percent threshold Indonesia requires for smartphone makers under its National Component Level Policy (TKDN). Compliance with the mandate is necessary for brands to sell phones in the country, which has Southeast Asia’s largest economy.

However, Oppo wants to go further, according to de Haan. “We are looking for good suppliers for all our components, and we communicate and cooperate closely with the Ministry of Industry and local governments to find the right suppliers and sellers for us,” he said during a Tuesday media tour of the factory. that the company sponsored.

Oppo launched its Find X8 and Find X8 Pro in Indonesia on November 20, bringing the Find X line back to overseas markets after a two-year hiatus. Photo: Oppo
Oppo launched its Find X8 and Find X8 Pro in Indonesia on November 20, bringing the Find X line back to overseas markets after a two-year hiatus. Photo: Oppo
Indonesia is leveraging its rapid economic growth to boost foreign investment in local manufacturing, a trend that is growing globally. India, for example, has pushed a “Make in India” campaign for a decadesignificantly increasing its manufacturing base.