Illegal cellphone assembly factory causing state losses shut

Jakarta (ANTARA) - Trade Minister Budi Santoso has closed an unlicensed mobile phone assembly factory that resulted in state losses of Rp17.6 billion (US$1 million).

Santoso revealed that some 5,100 mobile phones of various brands were found assembled at a shophouse in the Green Court area in Cengkareng, West Jakarta, valued at Rp12 billion (US$713 thousand).

"We also found 747 packages of accessories, casings, and chargers worth Rp5.54 billion (US$329 thousand), bringing the total value to around Rp17.6 billion," the minister remarked in a press conference in Jakarta on Wednesday regarding goods not meeting regulations.

Santoso explained that all accessories, hardware, chargers, and mobile phone assembly components came from China and were shipped via Batam.

He stated that the illegal mobile phone assembly activity had been ongoing since mid-2023, with products being sold via online marketplace.

"In one week, they can produce 5,100 units. This practice violated many regulations, including illegal imports and assembling cellphones from refurbished materials. In fact, there were many used goods, including mobile phone brands like Redmi, Oppo, and Vivo," the minister revealed.

The minister noted that the Ministry of Trade, assisted by law enforcement, has seized all these illegal products.

Furthermore, his side continues to coordinate with marketplaces regarding the sale of illegal products on their platforms.

He emphasized that the company assembling the illegal cellphones has been shut down and is no longer operational.

Meanwhile, goods that were stored and awaiting shipment have also been confiscated, Santoso added.

"The company has been shut down and is no longer operating. We have also secured the goods. They are barred from engaging in the same activity," the minister remarked.