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Published on : Apr 13, 2015

As per reports, leading Chinese smartphone manufacturer Xiaomi, is all set to start assembling its products from the Indonesia facility. This is regarded as a conscious step taken by the company to boost the percentage of local produce ahead of the “made in Indonesia” plan by the government. The decision is likely to impose a mandatory content requirement of 40% on handsets. 

Speaking on the same, the General Manager for Xiaomi in Southeast Asia, Steve Vickers said on Friday that the decision was taken so as to bolster local assembly in Indonesia. He also added, the company is foreseeing to set up their facility before 2015 ends. 

According to sources, Xioami is set to use the contract manufacturers who are in Indonesia, the same way phone manufacturers had deliberated in Brazil and China. However, the source did not divulge any details regarding who could be the potential manufacturing partners for the venture. 

Opinion leaders are suspecting, the partners could be any company. As of now, PT Tridharma Kencana based at Serang and Batam-based PT Sat Nusa Persada are touted as the potential manufacturing partner for Xiaomi by the local media. 

However as told by Vickers, the company is yet to finalize on any names. They have not entered into contract with any of the local manufacturers as of yet. He also revealed the completion of the deal would hugely depend on multiple norms and regulations, which are still under discussion. 

On the other hand, a source from the Ministry of Communication and Information revealed, they are planning to issue regulations by the middle of this year with regards to the minimum 40% local content requirement for all 4G handsets being sold. Moreover the regulation will mandate the same to be completed by 2017.