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Govt Upset as RIM Chooses Malaysia for Base
Dion Bisara | September 08, 2011

BlackBerry maker RIM has chosen to set up its regional production base in Malaysia. (JG Photo/Afriadi Hikmal) BlackBerry maker RIM has chosen to set up its regional production base in Malaysia. (JG Photo/Afriadi Hikmal)
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ericc
4:23pm Sep 9, 2011

Best country to set-up business;

Rank 31 - Malaysia

Rant 75 - Indonesia

Least corrupted country;

Rank 56 - Malaysia

Rank 110 - Indonesia (Just ahead of Ethiopia)

You tell me, where would you set-up if you are the boss of RIM. Duh!!?? Plus, malaysia gov don't slap a 20million rupiah for a single working permit.


waynelerrigo
10:38am Sep 9, 2011

This does not seem a well considered reaction to RIMMs decision. It will reflect poorly on Indonesia as a target for foreign investment. Indonesia is said to have dropped 2 slots in investor popularity. Consider this one of the reasons. I love this place and wish it well in all regards. Please consider the overall investment climate here. Try to look at it in the eyes of the types of investors you wish to have for the long term and will not harm this country.

BilboBaggins
10:28am Sep 9, 2011

Are the cars these lawmakers and politicians drive made in Indonesia?

Didn't think so.

Acting like little children won't fix anything.

summerwood
7:59am Sep 9, 2011

Another article in the Globe today was about how the SEA Games organizer had finally decided it would need to pull the plug and cancel the Games due to failure of GOI to release budget timely. One might think this is unrelated to the root cause of the RIM issue, but of course it's not. The SEA issue is just one very small example of the kinds of things that cause investors to sheke their heads in disbelief and quickly move on. It's not that Indonesia has much to learn before it's considered an attractive destination for invesotrs (or tourists, or families, or...). Indonesia knows what's wrong, there's simply no will to ACT in a way that is productive for the longer term, or for the broader good - i.e that of Indonesia. The only interest that has successfully flourished here in Indonesia - at least for the 30 years that I've been here - is self-interest and that is growing and thriving at an ever increasing rate. The result when it comes to foreign investors - RUN! There are many far more attractive, friendly, predictable, places to do business in than Indonesia.

mrsheep
6:50am Sep 9, 2011

The decision is no surprise. If you were Blackberry where would you go? Infrastructure (MSC/Transport), better education, better power (Thank goodness for the UPS/generators at Indonesia datacentres). At least the phones have a good chance of being well built in Malaysia. And what is wrong with that? Are you going to stop buying Samsung? They aren't built in Indonesia. BMW? Apple?

Classic case of sour grapes, now for revenge. Yeah we lost the deal so lets tax them more, aren't we pathetic!

What about putting funding into creating an innovative Indonesian electronics industry with a vertically integrated business model, that designs, builds and sells its own devices. Imagine that.

Don't just sit on your bum and complain. Do something about it if it really is a problem.


The decision of BlackBerry maker Research In Motion, to set up its production base for Asia in Malaysia is upsetting some senior Indonesian officials and prompting them to consider hitting back at the Canadian company.

“Why did they choose to build in Malaysia?” said Gita Wirjawan, the chairman of the Investment Coordinating Board (BKPM), suggesting Indonesia’s large market should have been a factor.

Gita said the market for BlackBerrys in Malaysia — less than 400,000 units sold annually — was small compared to the Indonesian market — estimated at 4 million units a year.

He said he believed that Jakarta’s demand for the company to establish a data center here was behind the decision.

RIM spokesman Oliver Pilgerstorfer said the company was unable to comment on the matter.

Last year, Indonesia required RIM to set up a regional network aggregator, or data center, in the country, establish at least 40 authorized customer care centers, facilitate lawful interception of its encrypted BlackBerry Messenger services by officials and filter pornographic content.

German company Bosch recently announced it was planning to build a solar-panel plant in Malaysia, even though Indonesia was its target market, Gita said. The BKPM chairman proposed tariff barriers for companies that import luxury goods rather than produce them in Indonesia.

He received some support from Industry Minister M.S. Hidayat, who said the government should penalize producers with a large market share in Indonesia who import their products.

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

The Tax Law currently allows additional taxes to be levied on goods considered luxurious, consumed by a limited number of high-income people or purchased mostly as a status symbols.

Hidayat said his plan was still in the preliminary stage and that its implementation would be some time away.

The proposal is likely to prove unpopular with consumers, who would likely bare the brunt of price rises or a reduced range of products.

Finance Minister Agus Martowardojo raised concerns Indonesia was heavily reliant on importing consumer products while exporting raw materials.

“We provide incentives for industries that export products with added value,” Agus said, adding that Indonesia should not just become a market for neighboring countries’ goods.

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