Foxconn postpones huge investment in Indonesia

PHOTO: Foxconn postpones huge investment in Indonesia

JAKARTA - The planned investment by Taiwanese electronic manufacturer Foxconn Technology Group has been postponed as negotiations continue, a senior minister has said.

Industry Minister MS Hidayat said on Monday that there were several requirements that the firm had to meet.

Hidayat, however, declined to elaborate further, saying the government had promised not to reveal specific details as the discussions were still ongoing.

"In addition, there are also several terms and conditions the firm has yet to meet with a number of candidates for its local partners here," he said at a press briefing.

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

Earlier this year, Foxconn, a subsidiary of Taiwan-based Hon Hai Precision Industry Ltd, reportedly planned to establish a manufacturing base in the Modern Cikande Industrial Estate in Serang, Banten, in December this year with an investment rumored to be worth up to US$10 billion.

Hon Hai previously said it was looking to spend as much as $1 billion on establishing a factory in Indonesia, but Indonesian government officials claimed that the total investment could reach $10 billion.

On Monday, Hidayat said the initial investment to be made by Foxconn may reach $2 billion to $3 billion.

Foxconn's possible partners include PT Hartono Istana Teknologi, a major manufacturer of electronic products under the Polytron brand; state-owned cellular network developer PT Industri Telekomunimasi Indonesia (INTI); and Indonesia's largest telecommunication provider, PT Telekomunikasi Indonesia (Telkom).

Foxconn officials were not available to comment on the matter.