Jakarta, INTI - The electronics industry in Indonesia continues to thrive, serving as a significant contributor to the country's manufacturing growth. Recent data indicates that the sector encompassing metal goods, computers, electronic goods, optics, and electrical equipment experienced a robust growth rate of 7.29% in Q3 2024. Additionally, export value for electronic products reached an impressive USD 10.07 billion during the same period, driven primarily by telecommunications equipment, household electronics, electrical devices, and components. Among the key players leading this success story is PT Samsung Electronics Indonesia, whose contributions have been pivotal to the nation’s economic progress.

A Surge in Electronics Exports

Indonesia’s electronics industry has not only strengthened its domestic foothold but has also expanded its global presence. Data shows that exports of handheld devices, computers, and tablets (HKT) alone reached USD 277 million in 2024. These figures underscore Indonesia’s capability to produce high-technology products, such as smartphones, for the international market.

Director General of Metal, Machinery, Transportation Equipment, and Electronics Industries (ILMATE), Setia Diarta, praised companies like PT Samsung Electronics Indonesia for positioning the country as a manufacturing hub. "We appreciate the HKT industry for consistently exporting its products, including PT Samsung Electronics Indonesia, which has made significant contributions to our exports," he said during a site visit to Cikarang on January 7.

Strengthening Local Content Requirements

One of the defining aspects of PT Samsung Electronics Indonesia's success lies in its adherence to Indonesia's Local Content Requirements (TKDN). As mandated by Indonesian regulations, HKT products must include at least 35% local content. This policy aims to foster local industry participation and build a robust domestic manufacturing ecosystem.

PT Samsung Electronics Indonesia has gone beyond compliance, achieving a remarkable TKDN level of 40.30% for its SM-A356E model. "This accomplishment reflects the company’s commitment to adhering to regulations while significantly contributing to job creation and technology transfer in Indonesia," Setia explained.

Impressive Production and Export Metrics

Since the enforcement of the TKDN policy, the HKT industry in Indonesia has experienced rapid growth. In 2023 alone, the domestic production of HKT devices reached 50 million units, while imports dropped to a mere 3.1 million units. This means that 94% of HKT products available in the domestic market were manufactured locally. PT Samsung Electronics Indonesia accounted for 14 million units, representing 28% of the nation’s total production.

Furthermore, PT Samsung Electronics Indonesia has demonstrated outstanding export performance. By 2024, the company had exported 1.56 million smartphones to several ASEAN countries, including the Philippines. "This achievement proves that Indonesian-made products are competitive in global markets," Setia added.

Driving Industrial Transformation

The visit by ILMATE’s Director General to PT Samsung Electronics Indonesia marked an important milestone in fostering collaboration between the government and the private sector. The government underscored the critical role of innovation in enhancing the competitiveness of Indonesia’s mobile phone industry. A key policy move being considered is raising the TKDN threshold for HKT products from 35% to 40%, a shift aimed at deepening industrial value chains and strengthening domestic manufacturing capabilities.

One area of focus for increasing TKDN levels is the use of Surface Mount Technology (SMT) in PCB assembly, a process already adopted by PT Samsung Electronics Indonesia. This step alone contributes 8% to the manufacturing aspect of TKDN. "We believe the proposed increase in the TKDN threshold will have a positive impact on the HKT industry’s development, and we hope PT Samsung Electronics Indonesia will support the implementation of this policy," Setia said optimistically.

Long-Term Investment and Innovation

PT Samsung Electronics Indonesia's achievements stem not only from strategic production and export initiatives but also from its long-term investment in the country. Since establishing its operations in 2016, the company has steadily expanded its production capacity, improved product quality, and introduced new technologies. This sustained investment has positioned PT Samsung Electronics Indonesia as a key player in the domestic market, with a market share that reflects its commitment to excellence.

Through its innovations and collaborations, the company is helping to drive Indonesia’s transformation into a sustainable, industry-based economy. PT Samsung Electronics Indonesia not only meets domestic demands but also continues to expand its global market penetration. "We hope that PT Samsung Electronics Indonesia will continue to innovate, collaborate, and bring Indonesian products to the global stage," Setia expressed.

Challenges and Future Opportunities

Despite these impressive achievements, the electronics industry in Indonesia faces several challenges, such as the need for a more skilled workforce, greater investment in advanced technology, and improved infrastructure. However, with government support and the commitment of key industry players like PT Samsung Electronics Indonesia, these challenges can be converted into opportunities for growth.

Collaboration between the government, private sector, and academia will be vital in creating an ecosystem that supports sustainable industrial growth. By focusing on innovation and maintaining a competitive edge, Indonesia can further cement its position as a leading player in the global electronics market.

Indonesia's electronics industry is on an upward trajectory, showcasing significant growth in both domestic and international markets. Companies like PT Samsung Electronics Indonesia are at the forefront of this transformation, contributing through innovation, investment, and compliance with local content regulations. With strategic policies and continued collaboration, Indonesia is poised to emerge as a regional leader in electronics manufacturing, driving economic growth and fostering a sustainable industrial future.