Erajaya Cooperating with Axioo to Build a Mobile Phone Factory

Jeremy Sim (dok)

JAKARTA (IndoTelko) - PT Erajaya Swasembada Tbk (ERAA) finally cooperating with Axioo to build a mobile phone assembly plant in Indonesia after a long wait for the cooperation with Foxconn that never take place.

"We've been waiting for Axioo instead on dreaming on, we better do what we can," said CEO Retail Erajaya Group Jeremy Sim in Jakarta, Thursday (7/5).

Jeremy said that Erajaya recently acquired the majority shares of PT Axioo International Indonesia. Axioo International Indonesia is a company owned by Axioo which became the Electronic Manufacture Service (EMS).

Erajaya took over 5,100 of Axioo's shares belongs to Eka Nusa Persada or equivalent to 51% of the total shares issued and fully paid by Axioo with Rp 5.1 billion transaction value.

"The stock price is small because we did not buy the Axioo brand that produces computer or notebook. This is a new company formed to build a mobile phone factory," Jeremy said.

This cooperation with Axioo has made the cooperation agreement with Foxconn two years ago no longer valid.

"That Foxconn agreement was only valid for six month, so now we are cooperating with Axioo. According to plan, we will begin the plant building on July or August 2015," he said

After the plant began to operate, it is expected strengthen the company for end to end partnership and closer in principal.

"Later, we will create our own brand in the newly built plant, Venera and several global brands that have not build their factories here," he said.

Meanwhile, Erajaya Group CEO Hasan Aula said that, the plant building is also to comply with the local content (TKDN) for 4G Smartphone and The Indonesian Minister of Trade Regulation No. 82 of 2012 which states that every registered importer should have assembly plants.

"This plant will produce 2G, 3G, and 4G phones. The plant's initial stage will produce Venera's 2G and 3G phones. We have also discussed with several well-known brands. While cooperation with Sat Nusapersada to produce the Venera could just keep going or reviewed, we shall see if the plant is fully operating," Hasan said.

Hasan said that the factory will be located in Cakung and will be able to produce about 100 thousand units of mobile phones per month in the early stages.

"Currently we are calculating the working capital and other financial necessity. We will reveal the figures after the plant is fully operating. The calculation, this plant could contribute to next year's earnings," Hasan said, (es)