Jakarta Globe, Francezka Nangoy, October 7, 2013
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| Workers are seen inside a Foxconn factory in the township of Longhua in the southern Guangdong province May 26, 2010. (Reuters Photo/Bobby Yip) |
Nusa Dua.
Taiwan electronics giant Foxconn Technology Group will conclude negotiations
and establish a local subsidiary for its first Indonesian plant next year, the
company announced on Monday.
The
company, makers of Apple’s popular iPhone, first announced plans for an
Indonesian factory in 2012. Foxconn then spent 18 months in negotiations with
the Indonesian government and potential partners as it prepared to establish a
local venture. Those negotiations are almost complete, Foxconn officials told journalists at the Asia Pacific Economic
Cooperation summit in Nusa Dua, Bali.
“In 2014
the company would have been registered and the negotiations will be done,”
spokesman Simon Hsing said. “In 2014, you will see Foxconn coming.”
Chairman
and CEO Terry Gou declined to name a local partner or specify the value of the
project, saying only that the factory will be a “major investment,” in
Indonesia and will likely include multiple domestic partners.
Erajaya
Swasembada, a local handset distributor and manufacturer, has said it
approached by Foxconn for a potential partnership. Djarum Group and property
developer Agung Sedayu Group have also said they were in talks with the
electronics company.
Foxconn declined
to comment on the rumors.
“All I can
say is that everyone is possible as long as they are qualified,” Hsing said.
The factory
will use Indonesian-produced steel and tin and plans to make more than
handsets, company officials said. It plans to establish a domestic supply chain
for the products.
“We want to
make sure that the infrastructure is here,” Gou said. “We came here not just to
manufacture. We are making an entire supply chain in Indonesia.”
Gou and
company said they planned to travel to Jakarta after the announcement.
“This is
actually the reason I came [to APEC],” he said. “It is my first APEC [summit].
After APEC I will travel to Jakarta to meet our partners and also to talk to
the government.”
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