Xiaomi failed to sell its product in Indonesia

Xiaomi Mi-3 failed to enter Indonesia legaly
Xiaomi Mi-3 failed to enter Indonesia legaly
Chinese mobile phone manufacturer Xiaomi step to expand its market to Indonesia and Brazil was blocked due to the certification process that is considered convoluted.

As quoted from the Wall Street Journal, VP for Global Operations Xiaomi, Hugo Barra said that in Indonesia and Brazil, the process (certification) can reach six months to meet local standards and obtain certification to sell the product.

However, Android phones Xiaomi still targeted to be sold to the Indonesian market by the end of August.

No specific mention of what the underlying issues the certification process difficulties experienced by Xiaomi. Previously, Motorola had the same problem with the launch of its G Moto delayed up to four months.

The certification process itself seems to be too problematic for the popular smartphone vendors that have long poor across the country, such as Samsung, Nokia, LG, or BlackBerry.

Cell phone certification process in Indonesia is managed by the Directorate General of Resources and Equipment Post and Information Technology - Ministry of Communications and Information Technology.

In addition, concerning certification, the Government through the Ministry of Finance itself has previously rolled discourse imposition of Sales Tax on Luxury Goods for smartphones with the goal of import restrictions, although no sequel until now.

The difficulty of doing business for foreign vendors has become a dilemma for the government. On the one hand, they want to promote local telecommunications industry by encouraging the establishment of factories and the provision of incentives for telecom vendors in Indonesia. On the other hand, these obstacles instead of making foreign vendors and investors for fear of starting a business or investment here.

Chinese company Xiaomi known as a very rapid growth in sales of Android-based electronic product through online schemes.

Newly established in 2010, Xiaomi has become a competitor of Samsung and Apple in the smartphone segment by taking significant market share in China as the largest market.

This year, Xiaomi has started its expansion in a number of Southeast Asian countries, including Singapore and Malaysia.

The new government, especially the Minister of Communications and Information Technology, is expected to provide wise policy associated with the complexities of the telecommunications business in Indonesia to provide a win-win solution for all parties.

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