Indonesian Political, Business & Finance News

Nokia, Samsung mull cellular phone plants Electronic companies

| Source: GOI
Electronic companies Nokia of Finland and Samsung of South Korea are exploring the possibility of building cellular phone manufacturing and assembling plants in Indonesia, a ministry official said on Tuesday, Antara reported.

Director for Telematics Affairs at the Industry Ministry Ramon Bangun said Nokia was serious with its plan to build a factory in Indonesia as the company so far controlled over 50% of the cellular phone market in Indonesia.

Samsung also saw good prospects in developing a factory in Indonesia because the company had previously built an electronics factory in the country.

"Samsung will only apply for a factory business expansion license from the Capital Investment Coordinating Board (BKPM) because they already have an electronics factory in Indonesia," Bangun said.

The cellular phone market in the country continues to increase at an average growth of 15% per annum.

It is estimated that about 80 million cellular phone units are in circulation. Bangun estimated that 20 million units are sold each year.

He said cellular phone industries would continue to grow in the future with subscribers estimated to reach 130-140 million, or about 60-70% of the population.
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