PT Erajaya Swasembada (ERAA) Tbk or Erajaya has just acquired the majority of shares of PT Exa Nusa Persada, PT Axioo International Indonesia’s subsidiary which runs device assembly business. This acquisition serves as part of Erajaya’s strategic plan to adopt the Government’s latest regulation by enhancing the proportion of local content within its products.
Djatmiko Wardoyo, Erajaya’s Secretary, explained that the deal was undergone on Wednesday, April 29, 2015 and it was worth up to Rp 5,1 billion.
“In regard to the takeover of 5.100 shares which covers 51 percent of the total shares that are fully deposited under the name of Axioo Indonesia,” Wardoyo commented.
The deal doesn’t make Axioo being under Erajaya, as it is PT Exa Nusa Perdana which actually was acquired by Erajaya. “We didn’t acquire Axioo, but Exa Nusa Persada,” Wardoyo emphasized.
The acquisition becomes Erajaya’s first step towards its involvement in device assembly business. PT Exa Nusa Persada has established itself as one of most prominent companies in local manufacturing industry.
“They have secured the manufacturing license. So when it comes to assembling our own devices, we can use that. We are going to develop the local production OEM business, since we have started it already,” he stated.
Wardoyo further described that this acquisition is Erajaya’s anticipative action to accommodate the Government’s latest regulation on the local content in 4G smartphones being marketed within the Indonesian market. The regulation is planned to be enforced in 2017.
“We collaborate with a handful of brands. On the other hand, the Government will soon apply the local content regulation and not all brands are willing to open their own factory, so we can offer our Exa’s factories to them,” Wardoyo concluded.
