Foxconn Technology to invest US$1 bln in Indonesia
Wed, June 27 2012 21:45 | 2779 Views
Jakarta (ANTARA News) - Chinese chip maker Foxconn Technology Group is planning to build a plant in Indonesia at a cost of US$1 billion, according to Industry Minister M.S. Hidayat.
Illustration (Antara News/foxconn.com)
"The project is expected to create more than 1 million jobs," he stated, after attending the signing of a memorandum of understanding between Chinese National Federation of Industries and Indonesian business people here on Wednesday.
Foxconn Technology Group, a subsidiary of Hon Hai Precision Industry Co. Ltd, wants to produce hardware and software for a number of global gadget providers, Hidayat said.
"Trade Minister Gita Wirjawan has assured me of Foxconn`s desire to invest in Indonesia," he added.
The Chinese company would build the plant in Java, but it could also operate outside Java, the industry minister said.
"We asked the company to build its plant in an industrial estate in Eastern Indonesia, such as Morotai, North Maluku, but they are interested in building their electronics plant in East Java or Batam," he explained.
Meanwhile, the Industry Ministry`s director general for high-technology priority industries, Budi Darmadi, said the government was yet to decide on the incentives it would provide for Foxconn to build the new plant.
The incentives will be given based on the amount of investment made, he added.
"The Industry Ministry is coordinating with the Investment Coordinating Board (BKPM) and other related agencies to decide when and how much incentive will be provided to the Chinese company," Budi explained.
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