On May 7, the first supplier summit in Batam took place in Indonesia, with more than 20 suppliers of smartphone components from around the world. Among them is one of the world leaders in technology, the Xiaomi company, along with the Batam Indonesia Free Trade Zone Authority (BP Batam). The main objective was to educate suppliers about the Indonesian manufacturing ecosystem, in order to help them build local manufacturing facilities. After Xioami’s attendance at the supplier investment summit, it is probably that foreign investment gives a boost with a value of $315 million in the Indonesian industry for the manufacture of smartphones. In addition, this investment and alliance between Xiaomi and Bp Batam would generate up to 10,000 job opportunities. In this way Xiaomi remains committed to Indonesia, to take local production to the next level.
For his part, Steven Shi, the Head of the South Pacific Region of Xiaomi and Country Manager of Xiaomi Indonesia, said that they are committed to Indonesia and that they are working to take local manufacturing to a higher level: They are very happy to be able to finally work with BP Batam to install their global suppliers in what is the first Supplier Investment Summit that takes place in Batam. Through the various activities that took place at the summit, the Xiaomi team believes that the global suppliers realized the great market potential and the excellent investment climate in Indonesia.
Xiaomi and Bp Batam: Working for Improve the Indonesian Market
In 2017, the Investment Coordinating Board (BKPM) granted accounts of more than $ 1.15 billion of investment in 73 projects that were carried out in Batam last year. Therefore, Xiaomi says that if all these global providers of smartphone components from different origins have a base in Indonesia, this summit could produce at least $ 315 million of additional investment and generate up to 10,000 job opportunities in the technology area for their habitants. Which would provide multiple benefits to the local smartphone industry and, of course, to the consumers.
In turn, Lukita Dinarsyah Tuwo, president of BP Batam said:
“The first Supplier Investment Summit, which was initiated by Xiaomi, is a crucial first step towards the next wave of foreign investments that are expected to invigorate the whole local smartphone manufacturing scene in Indonesia. Beyond the financial investment and creation of job opportunities, we also need to consider how this will speed up the transformation of Indonesia into one of the largest digital economies in the world.”
Likewise, they value this infrastructure availability, as well as the strategic geographic location and the governmental support provided by the investment licensing facility that has made Batam a very competitive investment territory both in Asia and in the rest of the world.
Plus to the participation of Lukita Dinarsyah Tuwo of BP Batam, in the event’s inauguration also was the officials Mochammad Hadiyana, as the Director of Standardization of Posts and Telecommunications Equipment of the Ministry of Information and Communication Technologies of the Republic of Indonesia. In addition to the presence of Welldian Saragih, who is Head of the Subdirectorate of the Development Program of the Electronics and Telematics Industry, Ministry of Industry.
At the beginning of the last year, Xiaomi was planning the initiative ‘Kami Buatan Indonesia’. Which allowed the company to provide a wider range of products and generate a better experience in this investment Summit for suppliers. So, in this way, Xiaomi sympathized with PT Sat Nusapersada, its local manufacturer in the market.
Xiaomi will continue to contribute to the Indonesian market
This meeting lasted until May 8, where participating providers had the opportunity to visit Batu Ampar Seaport and Hang Nadim Cargo Airport to learn about the logistics facilities in Batam. And also made a stopover at the Batam parks in Batam Center and Tanjung Uncang. This experience served to give direct access to suppliers to examine and find out what investment opportunities they have in Indonesia. Among them are the incentives provided by BP Batam and national governments, the FDI policy, industrial policy and various private sector policies.
This was the first event to highlight the strategic investment perspectives in Batam. And, in words of Steven Shi, Xiaomi will continue to work with various branches of the Indonesian government to promote similar initiatives and thus contribute more to the Indonesian market.