BlackBerry deal attempts to keep the company relevant in Indonesia



Indonesia is a major market for BlackBerry. According to the Wall Street Journal, BBM is the top messaging platform in the country with 60 million active monthly users (as of June) in a market with 250 million people. According to Euromonitor International, by 2020 Indonesia will be the fourth largest market for smartphones with annual sales of $1 billion. But the latest "Made in Indonesia" regulations in the country mean that handsets sold in the region need to contain more locally sourced parts.

By next year, 30% of smartphones sold in Indonesia must have local content which can now include software or investments. In 2018, that figure will rise to 40%. This year, the figure is 20%. In order to be able to sell its phones in Indonesia, BlackBerry has entered into a deal with PT Telekomunikasi Indonesia Tbk. That firm is the largest wireless carrier in the country, and will produce, promote and distribute all BlackBerry handsets in the region.

BlackBerry's competitors like Apple have a harder time meeting the local content figure. Having software count toward the local content number does help Apple, and the company is rumored to be building an R&D center in Indonesia next year. Also looking to expand in the country is Xiaomi. A spokesman said that "Indonesia is a strategic market for Xiaomi and we are committed to grow." Lenovo and Samsung set up shop in the country in 2015, and other smartphone manufacturers have found local firms to build and assemble their handsets. Speaking of Samsung, the company had the largest market share in Indonesia as of the second quarter, with 26% of smartphone shipments according to IDC.

In addition to helping local manufacturers in the country, the increase in local content requirements will boost developers in the region. Looking to support the local software industry, smartphones purchased in Indonesia must come with seven local mobile apps pre-installed, or 14 games with at least a million active users.

As the smartphone manufacturers jostle to get in position to meet the "Made in Indonesia" regulations, BlackBerry's deal with PT Telekomunikasi Indonesia Tbk could go a long way toward keeping the country one of the few markets where BlackBerry is a relevant presence.

source: WSJ

FEATURED VIDEO

103 Comments

1. meanestgenius

Posts: 22522; Member since: May 28, 2014

Indonesia is one of, if not the largest market for BlackBerry. It makes sense that they would do whatever it takes to hold onto their position in that region.

25. PenTiltoKet

Posts: 552; Member since: May 18, 2016

BB is already DEAD in Indonesian. Only the one who CANNOT afford iPhone or Android still using BB.

43. meanestgenius

Posts: 22522; Member since: May 28, 2014

http://blogs.wsj.com/digits/2016/02/29/why-blackberry-is-a-hit-in-indonesia/ That article proves that BBM, and thus, BlackBerry, is alive and well in Indonesia. Doesn't matter if it's their software that is what's used over their hardware. They are a software company now, remember?

45. yoghibawono

Posts: 240; Member since: May 04, 2016

considering that Indonesia is pretty much fragmented in terms of prosperity areas; other than those who lives Java island (or the capital city of non Java island), plenty of people "CANNOT afford iPhone or Android still using BB". BB is simple and straight forward unlike android and iphone learning curves.

54. meanestgenius

Posts: 22522; Member since: May 28, 2014

Your own countrymen are proving you wrong, lol.

2. Plasticsh1t

Posts: 3109; Member since: Sep 01, 2014

Could you please explain if you don't mind why they have a large market in Indonesia specifically?

3. Mxyzptlk unregistered

Quite perplexing. I'm curious of this myself. They're trying pretty hard to stay relevant there.

4. Scott93274

Posts: 6040; Member since: Aug 06, 2013

Wow, I figured they would be switching exclusively to software going forward... Maybe their hardware division has relevance in the market after all...

5. Mxyzptlk unregistered

I don't think it has as much relevance as it did before. I think they're just outsourcing now.

7. Subie

Posts: 2430; Member since: Aug 01, 2015

"Tbk. That firm is the largest wireless carrier in the country, and will produce, promote and distribute all BlackBerry handsets in the region" I have a feeling that BB's hardware division will have nothing to do with these devices.

9. meanestgenius

Posts: 22522; Member since: May 28, 2014

Exactly. That joint venture in Indonesia will handle the hardware and BlackBerry is handling the software.

29. PenTiltoKet

Posts: 552; Member since: May 18, 2016

The phone will be designed and produced by BB Merah Putih, a Joint Venture of TiPhone and BB. This is a marketing words. Simple words. TiPhone, who used to make and sell US$30 QWERTY phone that looks like BB, will make a phone, and then they will put BB named on it. http://venturebeat.com/2016/09/28/blackberry-joint-venture-bb-merah-putih/

8. meanestgenius

Posts: 22522; Member since: May 28, 2014

They're not doing any hardware building or designing anymore. Everything concerning that will be outsourced, except for the hardware pin-injected security, which will be done by BlackBerry. BlackBerry will also be testing any and all hardware with their name and logo on it, to ensure that the quality is up to their standards before devices are released. The BlackBerry name still holds a lot of weight in Indonesia, despite what some people try and push off as facts.

12. Scott93274

Posts: 6040; Member since: Aug 06, 2013

Ah, Thanks for the clarification. +1

27. PenTiltoKet

Posts: 552; Member since: May 18, 2016

The article say 60 million BBM user, NOT BB user!!! If you live here, or ever visit Indonesia, you'll know BB already ddead.

30. meanestgenius

Posts: 22522; Member since: May 28, 2014

Clearly they're not dead in Indonesia, but don't let the truth get in the way of a good story. Carry on!

85. Mxyzptlk unregistered

+1 for the truth.

6. meanestgenius

Posts: 22522; Member since: May 28, 2014

It's explained a little in the video clip. Users there were exposed to BlackBerry handsets at a young age and they just stuck with it. Businesses there prefer BlackBerry handsets for their security, and BBM is extremely popular there.

10. Plasticsh1t

Posts: 3109; Member since: Sep 01, 2014

Right. Thanks for pointing that out.

11. meanestgenius

Posts: 22522; Member since: May 28, 2014

No worries.

13. willywanta

Posts: 502; Member since: Jun 04, 2014

No. Blackberry and BBM is dying here. Whatsapp already took over the crown as the most popular messaging app in Indonesia.

14. meanestgenius

Posts: 22522; Member since: May 28, 2014

60 million monthly active BBM users, plus Indonesia being BlackBerry's biggest consumer market would disagree with you about BlackBerry and BBM dying. I'm pretty sure that BlackBerry has a better grasp of where they stand in Indonesia than you do.

34. PenTiltoKet

Posts: 552; Member since: May 18, 2016

WSJ need to update the number. Perhaps there were 60 million BBM installed on Indonesian phone. But, according to the carrier, BBM traffic in messaging is less than 10%.

42. meanestgenius

Posts: 22522; Member since: May 28, 2014

Post a link proving it, or your just blowing hot, smelly air, as usual.

15. meanestgenius

Posts: 22522; Member since: May 28, 2014

As of this year, BlackBerry has more monthly active users in Indonesia than Facebook Messenger and Whatsapp. http://blogs.wsj.com/digits/2016/02/29/why-blackberry-is-a-hit-in-indonesia/

24. phldlphn unregistered

meanestgenius, I think you've found your calling. It's Indonesia, a place where BlackBerry is still relevant!

31. meanestgenius

Posts: 22522; Member since: May 28, 2014

Posts: 9. Member since: 11 Aug 2016. Credibility Factor: ZERO. Well, you've certainly found your calling, and it's trolling. Good luck to you!

32. PenTiltoKet

Posts: 552; Member since: May 18, 2016

The only reason BBM is popular because Indonesian loves to send SMS, and with BBM, they can save money. Some Indonesian, grow attachment to BBM, and still use BBM with their current android/iPhone. But MOST already MOVED ON to what's app.

40. meanestgenius

Posts: 22522; Member since: May 28, 2014

This article definitely disagrees with you on "But MOST already MOVED ON to what's app". http://blogs.wsj.com/digits/2016/02/29/why-blackberry-is-a-hit-in-indonesia/ And it's Whatsapp. You're welcome.

21. tweetgadget

Posts: 72; Member since: Feb 05, 2014

Im Indonesian, blackberry hardware business is died in Indonesia but Their BBM app is widely used, it is the most popular mesaaging app in the country .

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.
FCC OKs Cingular's purchase of AT&T Wireless