RIM Should Be Manufacturing BlackBerrys in Indonesia and Not Malaysia

14 Comments

It’s no secret that Indonesia is an incredible market for RIM and BlackBerrys. The country has an incredibly talented, young and mobile-based population that has really taken to RIM’s smartphone. Recently, RIM chose Malaysia as the center for its East-Asian BlackBerry manufacturing and while the terms of the deal may have been sweet, RIM might have missed on a huge growth opportunity in Indonesia. More after the jump.

Malaysian plant
Left to right: David Jollimore, Senior Director of Global Manufacturing at RIM, Randolph Mank, High Commissioner of Canada to Malaysia, Dany Bolduc, Vice President of Malaysia at RIM, Douglas Bingeman, Trade Commissioner of Canadian High Commission, and Zabidah Daud, Director of Malaysian Industrial Development Authority have their hands on the BlackBerry Curve 3G smartphones fresh off the assembly line at the new manufacturing plant in Penang, Malaysia.

The Capital Investment-Coordinating Board (BKPM) of Indonesia has come out saying that Indonesia would be a more suitable location for the manufacturing of BlackBerrys. If you’re a developer or blogger, you would certainly agree as Indonesia represents a much higher volume of downloads and interest in BlackBerry products than Malaysia. In terms of device sales, it’s clear that Indonesia is the bigger market. Sales of BlackBerry smartphones in Indonesia is expected to reach 4 million units with a value of US$300 per unit next year. This is compared with the annual sales of 400,000 units in Malaysia.

RIM’s decision to move to Malaysia was probably logical and the company surely tested Indonesian markets for manufacturing, but perhaps the decision was a bit shortsighted on RIM’s behalf. It’s hard to say without knowing the terms of the deal or what the Indonesian government and private sector could offer RIM in terms of price and quality. What we do know, is that Indonesians pride themselves on being self-sufficient and have very low imports. The country has consistently ran a trade surplus and it looks like this trend will continue. If RIM chose to make the manufacturing center in Indonesia, it would certainly guarantee a very large Indonesian market for the foreseeable future as Indonesians would see the product as a local smartphone. Perhaps this investment alone would help RIM weather any poor sales in other regions as the country’s population is young and would continue buying the devices over a long period. Also, it leaves the possibility of another smartphone opening a manufacturing plant in Indonesia which could shift the market and RIM would lose an enormous customer base. Only time will tell.

  • http://elabee.name Abi ??

    Yap…i can’t agree more!

    I used to be the one who not very interested in BlackBerry product, but since most of my friends (in Indonesia of course) use blackberry as their smartphone and connecting to each other with blackberry messenger, it seems using blackbery is needs to get connected in this country

  • Augustin

    i have like 4 bb’s and they all say made in hungary ?

  • http://about.me/kylemcinnes Kyle McInnes

    Hungary has been a major manufacturing center for European BlackBerrys for a long time now. Malaysia will service the Asian market.

  • http://BaconOnTheGo.com Jeff Bacon

    Yeah, there’s a reason THK Live (getthklive.com) is translated to Bahasa Indonesian =)

  • Aseana

    Investment decision is based on risk assessment. Indonesia is definitely riskier country than Malaysia. The Indonesian government keeps on changing their mind on policies (look at its bank and telco sectors), enforcement of laws are double-standards (how many cronies got away with corruption), and their politicians are foul mouth – preferring to sow nationalism with us-versus-foreigners antagonism attitude (calling Malaysia ‘Malingsial’ and Singapore ‘red-dot’).

    Malaysia is corrupted too, but its government and politicians are more business-friendly and are more willing to accommodate requests of foreign investors.

  • Anonymous

    I fail to see the connection between the country of manufacturing and sales in Indonesia.

  • http://caspan.com Caspan

    LOL those are cardboard cut outs of those well at least the 3 at the back are. Look at the image they do not look real at all and all the edges are too sharp.

  • Yaho

    MY is a certainly better place for industry . Try not to say something you have no idea.

  • a BBM addict

    Yeah.. RIM will lose a lot of consumer in indonesia.
    as we know Indonesia and Malaysia have been involve in many problems.
    there will be negative sentiment of people in indonesia not to buy RIM product that manufactured in malaysia. I believe they better choose another BB that manufactured on different countries even it’ll raise the cost.
    just see and wait what happen next.

  • PreJudiCe

    Haha,.. seems like UR malaysian Right!
    U R to pathetic to say that we called malaysian with malingsial.
    what about our national anthem that you are modified to something Gross. and we never do something like that. 
    what about you call us as INDONESIAL ! coz i didn’t see you type how you are call us.
    and i never heard that we call singapore as red-dot, maybe u r does.
    what about u r thread indonesian people in your country like animal, strain them,rape, even kill them. Although they do whatever u like and clean your ass.
    you’re just looking at it from the narrow thinking
    like your brain can not manage a larger information.
    so the point is “dont make it personal”. 

  • Hantoyo I-Made

    Malaysia has better tax incentive for new investment and not in Indonesia.  

    Try apply permit in Indonesia and you will be discourage.  So many permit and have to go through all the corrupted Dinas (Government Department Agency).

    Language problem (How many Indonesian can converse basic English).Lack of technical human resources (Degree and Diploma can be bought in Indonesia).

    Lack of supporting industry specialty such as metal stamping, electroplating services, IC assembly, burn-in and test services and etc.

    Lack of power supply in Indonesia. Indonesia always has power failure. 

    Indonesian government should look at their weakness before complaining about others out of  jealousy and envy.

  • Hantoyo I-Made

    Malaysia has better tax incentive for new investment and not in Indonesia.  

    Try apply permit in Indonesia and you will be discourage.  So many permit and have to go through all the corrupted Dinas (Government Department Agency).

    Language problem (How many Indonesian can converse basic English).Lack of technical human resources (Degree and Diploma can be bought in Indonesia).

    Lack of supporting industry specialty such as metal stamping, electroplating services, IC assembly, burn-in and test services and etc.

    Lack of power supply in Indonesia. Indonesia always has power failure. 

    Indonesian government should look at their weakness before complaining about others out of  jealousy and envy.

  • Hantoyo I-Made

    Just go through Bursa Malaysia, previously known as KLSE (Kuala Lumpur Stock Exchange) and you will see we have many high tech companies listed not only in the 2nd board (or now known as ACE Market) but also on the mainboard like MPI, Unisem (both MPI and UNISEM located in Ipoh Perak listed as world top 10 semi-conductor contract manufacturer) and others like Globetronic (burn-in test for Intel and AMD), ENG Tek, Atlan, AIC and many non-listed companies spill over from Singapore that located to Penang and Melaka (some in Selangor) such as Fairchild. 

    That show Malaysia have foreseen the growing of electronic and electrical Industry back in the 70s. So, don’t be jealous. All this doesn’t happen overnight and bear in mind the the M’sian Govenrment have done done anything about it (Many of them sleep on their job anyway) but from the private sector which the government cannot interfere.  

    For complement to our dear neighbor Bapak/Ibu Indonesia, Malaysia also losing out her competitive  edge to China. Why do you want a small company like Blackberry setting up a manufacturing plant in Indonesia? They are losing out badly in the world of Smartphone market. Just concentrate in your primary sector like oil palm/rubber industry. Should send more smart Indonesian to Harward Business School and learn about the theory of Competitive Advantage. Or as stated in Sun Tzu’s Art of War “???????????????????????????????????”  So it is said that if you know your enemies and know yourself, you can win a hundred battles without a single loss.
    If you only know yourself, but not your opponent, you may win or may lose.If you know neither yourself nor your enemy, you will always endanger yourself.
    Personally, I believe Indonesia will be a Asean economy dragon (not a Tiger, Tiger is too small) again but before that…Learn from Anwar “Ilmu Tinggi, Rendah Diri”…

  • anakmalaysia-indonesia

    bodo sial korang ni..
    ni citer sal blackberry, yg korg g ungkit sal MALINGSIAL and INDOGNESIAL ni pahal?
    bangang tol makhluk2 yg suke provok..
    come on la..
    we are one big family…
    malaysia-indonesia is same..
    we share almost our culture..
    think positive guys..