Oppo Strengthens Manufacturing in Indonesia Amidst Competition from Apple and Samsung
Oppo's Commitment to Indonesian Manufacturing
Oppo is intensifying its focus on local manufacturing in Indonesia, aiming to elevate its sourcing from domestic suppliers at its Tangerang factory, where roughly 36 to 37% of smartphone components are sourced locally. Jefry Firman de Haan, director of Oppo’s Indonesia Manufacturing Centre, confirms that the requirement for local components aligns with the government's TKDN policy, which mandates at least 35% domestic sourcing for smartphone makers.
Response to Local Regulations
- Indonesia's efforts to strengthen local manufacturing led to the recent bans on Apple's iPhones and Google's Pixel phones for regulatory non-compliance.
- Oppo, however, is proactively seeking reliable suppliers to boost local sourcing.
Market Dynamics in Southeast Asia
Oppo’s production facility caters to the entire Indonesian market, producing both low- and high-end devices, including the newly launched Find X8. The facility's output ranges between 1 million to 2 million units monthly based on market demand. With a 19% market share, Oppo leads the Indonesian smartphone market, outpacing its rivals, including Transsion and Samsung Electronics.
Strategic Expansion Plans
- Oppo’s strategic investment in local manufacturing is vital for complying with Indonesian regulations.
- Plans for future manufacturing expansions in Southeast Asia are contingent on local demand.
- Oppo has built a robust workforce in Indonesia, with 99% being local employees.
As competition heats up among smartphone manufacturers, Oppo’s focus on local supply chain enhancement in Indonesia could set a precedent for how global manufacturers approach their operations in Southeast Asia.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.