BATAM, Indonesia, 7 May, 2018 — Global technology leader, Xiaomi, together with Batam Indonesia Free Trade Zone Authority (BP Batam), holds the first ever Supplier Investment Summit in Batam today to host more than 20 global smartphone component suppliers to educate them about the Indonesian manufacturing ecosystem, with the aim of helping them to set up local manufacturing facilities in Indonesia.
Steven Shi, Head of Xiaomi South Pacific Region and Xiaomi Indonesia Country Manager (fifth from the left) and representatives from Xiaomi’s local partners and Batam government
Steven Shi, Head of Xiaomi South Pacific Region and Xiaomi Indonesia Country Manager said: “We are committed to Indonesia and we hope to take local manufacturing to the next level. That’s why we are very excited to be able to work with BP Batam to host our global suppliers in the first Supplier Investment Summit here in Batam. Through the different activities which are included in the summit, we are confident that our global suppliers will realize the great market potential and excellent investment climate in Indonesia, and in Batam more specifically.”
In 2017, the Investment Coordinating Board (BKPM) recorded more than $1.15 billion of investment from 73 projects in Batam last year. Should all these global smartphone component suppliers of various backgrounds set base in Indonesia, the summit could potentially lead to $315 million of additional investment and create as many as 10,000 job opportunities in the area, bringing benefits to the local smartphone industry and consumers as well.
Lukita Dinarsyah Tuwo, Chairman of BP Batam, welcomes the participants to this kind of business summit, he said: “The first Supplier Investment Summit, which was initiated by Xiaomi, is a crucial first step towards the next wave of foreign investments that is 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.” He appraised the availability of infrastructure, strategic geographic location and government support in the ease of investment licensing has create Batam as a competitive investment destination both in Asia and the world. One of the BP Batam support to ease investment process has been implemented through 3 hour investment licensing program (izin investasi 3 jam/ i23j).
In addition to Lukita Dinarsyah Tuwo of BP Batam, The Supplier Investment Summit opening ceremony was attended by dignitaries such as Mochammad Hadiyana (Director for Standardization Post and Telecommunication Equipment Ministry of Information and Communication Technologies Republic of Indonesia) and Welldian Saragih (Head of Sub Directorate of Electronics and Telematics Industry Development Program, Ministry for Industry Republic of Indonesia). This event extended with two session of presentation about Policies towards foreign investment that shared by BP Batam and the Government then a presentation about Best Practices and Policies in Batam.
Early last year, Xiaomi launched the ‘Kami Buatan Indonesia’ initiative, which enabled the company to deliver a wider range of products that are localized and offer a better experience overall. Xiaomi partnered with PT Sat Nusapersada as its local manufacturer in the market.
The summit will continue until Tuesday (8/5) where participating suppliers will be visiting Batu Ampar Seaport and Hang Nadim Cargo Airport to explore logistic facilities in Batam as well as stopover to Batam industrial parks at Batam Center and Tanjung Uncang. The visit will give direct access for suppliers to explore and learn about investment opportunities in Indonesia, incentives offered by BP Batam and local governments, FDI policy, industrial policy and various state sector specific policies.
The Supplier Investment Summit is the first smartphone component supplier gathering that has been done further to highlight strategic investment prospects in Batam. At the event, Steven Shi also mentioned that Xiaomi will continue to work with various branches of the government in Indonesia to replicate similar initiatives to contribute more in the Indonesian market.