economy

Kemenperin Appreciates The Implementation Of Local Content And The Export Performance Of Samsung's Smartphone Industry

The electronics industry consistently has a significant impact on the growth of the domestic manufacturing sector. This is evident from the growth in the Metal Goods; Computers, Electronics, Optics; and Electrical Equipment sectors, which recorded a high growth rate of 7.29 percent in the third quarter of 2024.

Furthermore, the export value of electronic products reached USD 10.07 billion by the third quarter of 2024, mainly driven by exports of telecommunications equipment, household electronics, electrical equipment, and components. Specifically, exports of mobile phones, laptops, and tablets (HKT) amounted to 277 million USD throughout 2024.

"This achievement shows that Indonesia can export high-tech products like smartphones. The Ministry of Industry appreciates HKT companies that have made Indonesia their production base and continue to export their products, including PT. Samsung Electronics Indonesia," said Setia Diarta, Director General of Metal, Machinery, Transportation Equipment, and Electronics Industry, in Cikarang on Tuesday (January 7).

Setia noted that the Ministry of Industry values the contributions of companies investing in Indonesia and their efforts to increase the Domestic Component Level (TKDN) in various electronic products, especially mobile phones and tablets. "This visit also aims to encourage the increase of TKDN value and support the growth of electronic product exports to the global market," he explained.

The Ministry of Industry appreciates PT Samsung Electronics Indonesia's commitment to meeting TKDN requirements, which not only strengthens the local industry but also creates jobs and facilitates technology transfer in Indonesia, representing a real step towards building a highly competitive industry.

Setia explained that the current policy in Indonesia requires mobile phone and tablet products to have a minimum local content value of 35% in their production process. This rule aims to boost local industry participation and strengthen the domestic manufacturing ecosystem. PT Samsung Electronics Indonesia achieved the highest local content value of 40.30% for the model SM-A356E.

Since the implementation of the 35% local content threshold, the HKT industry has seen rapid growth, while imports of HKT products have decreased. In 2023, domestic HKT production reached 50 million units, with imports at only 3.1 million units. This means that 94% of HKT products are made locally. In that year, PT Samsung Electronics Indonesia produced 14 million units, accounting for about 28% of all HKT products made in Indonesia. This reflects PT Samsung Electronics Indonesia's strong position in the domestic market, resulting from its investments since 2016.

In addition to meeting domestic market needs, PT Samsung Electronics Indonesia has also shown impressive export performance. Throughout 2024, the company exported 1.56 million units to several ASEAN countries.

"We express our deepest appreciation to PT Samsung Electronics Indonesia for sending its smartphones for export to the Philippines, which is part of the 1.56 million units exported. We continue to encourage PT SEIN to collaborate, innovate, and develop high-tech products to help build the domestic industry," said the Director General of ILMATE.

Tag: Electronics Industry Kemenperin