Foxconn delays Indonesia investment

Taiwanese manufacturer will be postponing its factory investments in west Java for around three to six months as several terms and conditions have yet to be met.
Written by Liau Yun Qing, Contributor

Taiwanese contract manufacturer Foxconn Technology Group will have to delay its manufacturing investments in Indonesia for several months as it did not meet several requirements set out by the local government.

Citing Industry Minister M.S. Hidayat, the Jakarta Post reported Monday said Foxconn has "several terms and conditions yet to meet with a number of candidates for its local partners" in order to start building its manufacturing base in the country, but declined to give more details as negotiations are still ongoing.

"The situation makes it necessary to postpone the plan for a couple of months, perhaps around three to six months," Hidayat added.

The report noted that Foxconn's possible partners include electronic manufacturer Hartono Istana Teknologi, state-owned cellular network developer Industri Telekomunimasi Indonesia (INTI), and Indonesia's largest telecommunication provider, Telekomunikasi Indonesia (Telkom).

The company had originally planned to complete the building of its first factory, which will be located in Modern Cikande Industrial Estate in Banten province in west Java, in October. Factory operations were projected to begin this month, and this first phase of investment was said to cost "hundreds of millions of dollars" out of an expected total investment of US$10 billion.

Hidayat on Monday said the initial investment phase is now expected to reach US$2 billion to US$3 billion.



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