Samsung Electronics' production lines for smartphones in Indonesia have reportedly started operating recently, according to a Korean-language Edaily report citing sources familiar with Samsung's operations.

The production lines will produce smartphones specifically for the Indonesia market and will enable the Korea-based vendor to compete effectively against its China-based competitors, which have been aggressively expanding their presence in the country, said the paper.

The production lines, located in Cikarang, Jakarta, will be able to roll out 900,000 smartphones a month.

On the other hand, China-based Oppo and Haier reportedly also plan to build factories in Indonesia with a production capacity of six and 2.4 million smartphones a year, respectively.

Only about 25% of handsets used in Indonesia are smartphones, said the paper.

Samsung ranked the top smartphone vendor in Indonesia with a 22% share in 2014, down 8pp from a year earlier, according to Counterpoint.