Actually Indonesian smart phone producers are not actually destroyed but their presents are not dominant anymore, and it happen since about 2-3 years ago. It is not because of Chinese companies set any factory here, they just sell their phone from China directly.
It is IMO due to import tariff which is set in zero after Asean China FTA becomes effective in 2012. It makes local brand has to compete directly with Chinese brand like OPPO that is now market leader in Indonesian smart phone market.
The FDI impact is actually more affecting our electronics giant like Polytron since Japanese and Korean set up their factories here. And it is also due to their brand image which is superior compared to our local brand.
Actually our biggest electronic company, Polytron is still exist, but they are not market leader anymore in Indonesia.
Other Indonesian electronic giant is Gobel Panasonic. A company made by Indonesian entrepreneur, Rahmad Gobel, but later merge with Panasonic from Japan.
Here is the example of Polytron new products:
Their smart phone
Thanks for the correction.
In BD local electronics company like Walton dominates the market despite the fact that brands like Samsung set up factories there and selling to local consumers.
BD only allowed in Samsung once it was confident the domestic companies could compete.