Foxconn Indonesian plant to start in December

Taiwanese manufacturer's facility in Indonesia to start work at the end of the year and majority of output will be targeted at the local market.

Taiwanese manufacturer Foxconn Technology Group's Indonesian factory will begin operating in December this year and the majority of the output will be sold in the local market, says report.

A Jakarta Post report Thursday cited Industry Minister M.S. Hidayat saying Foxconn's first factory in Indonesia which is located in Modern Cikande Industrial Estate in Banten province in west Java, will be ready in October. The company plans to produce 3 million mobile phones in its initial phase, it added.

According to Trade Minister Gita Wirjawan who was in talks with Foxconn CEO and Hon Hai founder Terry Gou, the manufacturer said a large portion of the factory's products will be sold in the Indonesian market with a smaller portion for export.

Hidayat noted that the first phase of Foxconn's investment in Indonesia will cost "hundreds of millions of dollars", out of a total investment of US$10 billion.

Gita added that Foxconn's second phase will begin in July 2013 with its facility, taking up 400 hectares of land. He added that Foxconn plans to increase its mobile phone output to 10 million handsets during the completion of the second phase in the next two years, and also manufacture other devices such as smart TVs and media tablets.

The report said the Indonesian government asked Foxconn to manufacture mid-end mobile phones and smartphones at prices of around US$100 per unit as the country's mobile phone market is driven by the middle class.

In June, Indonesian ministers revealed Foxconn's plans to set up operations in the archipelago . Hidayat said the facility will create about 1 million new jobs for the country.