No BlackBerry Plant in Indonesia? We’ll Tax You!

Despite the massive amount of Blackberry users it has in Indonesia, handset maker RIM has decided to build its new plant in neighboring country, Malaysia. This decision seems to have ticked off the Indonesian government, as it appears to be plotting a sort of ‘revenge,’ which could come in the form of a luxury goods tax for Blackberry handsets.

The Indonesian Investment Coordinating Board proposed tariff barriers for companies that import luxury goods. Industry Minister M.S. Hidayat supported this idea, saying to The Jakarta Globe:

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

This plan sounds childish to me. Indeed, it is a loss for Indonesia that RIM decided to invest in another country who sold less than 400,000 BlackBerry units in an entire year, compared to Indonesia which has more than three million users in total. And I haven’t even mentioned the BlackBerry app developers in Indonesia, which are also on the rise.

But let’s step back for a moment, to look at RIM’s point of view. Indonesia still lacks good infrastructure, as the government is still trying to improve internet connectivity. The political condition is also rather unstable with so many leadership scandals. The government’s demands and threats towards RIM regarding pornographic content can’t be overlooked either.

But nevertheless, RIM spokesman Oliver Pilgerstorfer stated:

RIM remains fully committed to Indonesia, where we enjoy strong partnerships and tremendous positive enthusiasm for our BlackBerry products.

With or without the plant in the country, Indonesian consumers’ love for BlackBerry is note likely to fade. Its latest handsets are still on the most-wanted list for BlackBerry lovers. So instead of planning payback, I personally suggest the Indonesian government could learn from RIM’s decision. See it as reason to prepare better conditions for investors, and improve the country for foreign companies to do business here.