Xiaomi has announced plans to set up a permanent business entity in Indonesia. Indonesia is pushing for foreign firms that have internet-based services there to set up local companies for the purpose of tax compliance. Speaking at the Xiaomi Way of Innovation event in Jakarta, CEO/founder Lei Jun said Indonesia was the company’s “most important” market after China and India. International Data Corporation (IDC) data for the first quarter of this year ranked Xiaomi, which entered the smartphone market in 2010, the fifth-largest smartphone manufacturer in the world. It has a presence in more than 60 countries and last month shipped a record 10 million smartphones, thanks to growing demand in India. Lei said Xiaomi was mostly known in Indonesia as a smartphone manufacturer, but he wanted to change that by taking more of the firm’s products mainstream. Xiaomi was also an internet and e-commerce company, he said. He referred to the company’s business model as a “golden triangle” as it was propped up by three key elements: hardware, internet and retail. Xiaomi’s products include robot vacuum cleaners, rice cookers, washing machines, scooters, toys and desk lamps. “Hopefully in the future Xiaomi’s ecosystem of products can deliver a great impact on Indonesian users and producers.”
Lei Jun is setting up a permanent unit in Indonesia as the company views the country as the "most important" market after India and Indonesia and wants to be known for more than just a smartphone maker but also for its hardware, internet and retail abilities, or "golden triangle", as the company's CEO Lei Jun describes it. Xiaomi is now the fifth largest smartphone manufacturer globally, with presence in over 60 countries, according to Xiaomi , thanks in particular to its growing demand in India .