No BlackBerry Plant in Indonesia? We’ll Tax You!

166 days ago by Ratri Adityarani, in Asia, Business, Gadgets, Mobile

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BlackBerry Indonesia

Despite the massive amount of Blackberry users it has in Indonesia, handset maker RIM has decided to build its new plant in neighboring country, Malaysia. This decision seems to have ticked off the Indonesian government, as it appears to be plotting a sort of ‘revenge,’ which could come in the form of a luxury goods tax for Blackberry handsets.

The Indonesian Investment Coordinating Board proposed tariff barriers for companies that import luxury goods. Industry Minister M.S. Hidayat supported this idea, saying to The Jakarta Globe:

I suggest we impose an additional value-added tax, or luxury tax, for such goods, so that people would choose to invest here instead.

This plan sounds childish to me. Indeed, it is a loss for Indonesia that RIM decided to invest in another country who sold less than 400,000 BlackBerry units in an entire year, compared to Indonesia which has more than three million users in total. And I haven’t even mentioned the BlackBerry app developers in Indonesia, which are also on the rise.

But let’s step back for a moment, to look at RIM’s point of view. Indonesia still lacks good infrastructure, as the government is still trying to improve internet connectivity. The political condition is also rather unstable with so many leadership scandals. The government’s demands and threats towards RIM regarding pornographic content can’t be overlooked either.

But nevertheless, RIM spokesman Oliver Pilgerstorfer stated:

RIM remains fully committed to Indonesia, where we enjoy strong partnerships and tremendous positive enthusiasm for our BlackBerry products.

With or without the plant in the country, Indonesian consumers’ love for BlackBerry is note likely to fade. Its latest handsets are still on the most-wanted list for BlackBerry lovers. So instead of planning payback, I personally suggest the Indonesian government could learn from RIM’s decision. See it as reason to prepare better conditions for investors, and improve the country for foreign companies to do business here.

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Tags: blackberry, government, indonesia, investment, MS Hidayat, Oliver Pilgerstorfer

About Ratri Adityarani

Ratri is a bookworm and a loyal music lover who loves to write and enjoys culinary tours. She studied social and political issues and jumped into the social media world as she develops her skills in international relations. Her biggest interests are food, history, and cute stationery.

View all posts by Ratri Adityarani →

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http://www.facebook.com/patrickyong.cm Patrick Yong

Indonesia should think of how to attract investors with tax incentives and freebies (i.e. free leasing of land) instead of penalizing people for not setting up factories there.
Vsovereign

or RIM can learn how the Japanese and Koreans do business in Indonesia. Do they have factories in Malaysia? You bet. But that doesn’t prevent them from opening factories in Indonesia doesn’t it? Especially since there are more consumers in Indonesia.
RIM’s mistake is that it makes Indonesian gov’t loses face & since it’s within the gov’t powers to exact revenge….petty I know. Just throw the gov’t some bones! It doesn’t even have to be the biggest bone.
http://twitter.com/toniprihadi Toni Prihadi

it was a shame that this article comin from indonesian citizen. and its a shame either that RIM didn’t build their factory indonesia, despite the full potential of user and dgital growth in indonesia. and the above excuse is too shallow to be written.

#1 internet connectivity : hellooow you can build factory in batam which is only several km from the 1st tier internet hub (singapore) and the benefit if you build ‘mirror server’ at batam the internet blackberry service will be faster.

#2 unstable : who’s unstable ? Malaysia with it’s latest demo, you just build in batam where little risk from riot compare to other island.

#3 Protecting the Country from Pornography is one of the Goverment mandatory task despite the way they handle it.

#4 meh. brought the developer for your support. the developer should be more worldwide focus, not just local

@facebook-591299809:disqus there is tax incentive with some scheme and yes there is such free leasing of land (which i supposed not that free) – batam island

@b1f9011d8629727d5157bcced7714f03:disqus i agree with you. i wonder that they came up with that idea. in the world, Blackberry market share are behind apple and android which is increasing very fast. They lucky enough that indonesian people used their product significant, they should manage this, not just take advantage on indonesian market, they should engage.

and Ratri Adityarani, It was shame on you.” Right or wrong my country “. please do make a well research article and two side point of view, not like this one side point of view article.
http://twitter.com/ephi Ephi Ong

To comment on ‘one-sided’ POV, I think this sentence says all, in case you missed it: “But let’s step back for a moment, to look at RIM’s point of view.”
Pingback: More stick, less carrot = great industry policy | | rahul gaitonde dot orgrahul gaitonde dot org
http://www.facebook.com/profile.php?id=1253994273 Mustaqim Mustafa

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
http://pulse.yahoo.com/_GHBT52C2ZNHMUVVDIBWZ2COFQ4 David N

Who cares really, Blackberry sucks.
Saputradenis

some of my friends say that it is om for RIM to invest in other country…but please..why Malaysia? …
Saputradenis

some of my friends say that it is ok for RIM to invest in other country…but please..why Malaysia? …and others say that they still want to buy new models of BB, but not made in Malaysia…
http://twitter.com/toniprihadi Toni Prihadi

yes. i agree.
Meijerrc

apart from Indonesia I have not seen a country in the world so emerged in a mania for Black berry,IPAD and Facebook. People don’t care about the mis management and lack of leadership in this country as long they have their ipad and black berry connection.In general Indonesians are easy to be convinced to follow the masses and the show off culture adds up to that. Malaysia, with all due credit, have better infrastructure , better human resources and smarter marketing people.