Tiphone Mobile Indonesia intends to build a new plant in order to comply with a 2014 ministerial regulation on local content. (Antara Photo/Rosa Panggabean)

Enforce Regulations, Then We Build, Device Maker Tells Government


JANUARY 14, 2016

Jakarta. Cellphone maker Tiphone Mobile Indonesia says it will not go ahead with building a proposed plant in the country until a government regulation on locally assembled devices is issued.

Tiphone and Taiwan’s Arima Communications last year agreed to set up a joint-venture assembly plant in Bekasi, on the eastern outskirts of Jakarta, to comply with a requirement that all 4G-enabled cellular devices have 30 percent local content by 2017.

“But the regulation has not yet been enforced. Only after it is implemented correctly will we follow through [with building the plant],” said Tiphone corporate secretary Semuel.

Tiphone is to have a controlling stake of 55 percent in its joint venture with Arima, called Adi Reka Mandiri. The proposed plant will churn out Tiphone-branded mobile as well as serve as a contract assembler for LG, Sony, HTC and Blackberry.