Indonesia plays hardball with smartphone manufacturers
In this article (5)
When Polytron became the first Indonesian company to produce 4G-capable smartphones last year, it changed the “Manufactured in China” inscription on its handsets to “Made in Kudus”, a town in Central Java.
Polytron relocated production from China to comply with “local-content” rules introduced in 2012. The regulations have raised concerns about higher manufacturing costs and hung question marks over an industry championed by the Indonesian government.
The United States has pressed Indonesia to relax the rules, which it says will hamper efforts of tech giants such as Apple to expand into one of the world’s last big markets where use of smartphones has yet to truly take off.
Questions & Answers
Q.Which company was the first Indonesian firm to produce 4G-capable smartphones last year?
Which company was the first Indonesian firm to produce 4G-capable smartphones last year?
Polytron was the first Indonesian company to produce 4G-capable smartphones. They also changed the inscription on their handsets from "Manufactured in China" to "Made in Kudus" after relocating production.
Q.Why did Polytron move its smartphone production from China to Indonesia?
Why did Polytron move its smartphone production from China to Indonesia?
Polytron relocated its smartphone production to Kudus, Central Java, to comply with the "local-content" rules. These regulations were introduced by the Indonesian government in 2012.
Q.What concerns have arisen due to Indonesia's local-content rules for smartphone manufacturing?
What concerns have arisen due to Indonesia's local-content rules for smartphone manufacturing?
The local-content rules have raised concerns about potentially higher manufacturing costs for companies. There are also questions about the impact on an industry that the Indonesian government strongly supports.
Q.How has the United States reacted to Indonesia's local-content rules for smartphones?
How has the United States reacted to Indonesia's local-content rules for smartphones?
The United States has urged Indonesia to relax these rules. It believes the regulations will hinder major tech companies like Apple from expanding into what is considered one of the world's last large untapped smartphone markets.
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