Fri, Sep 20, 2013 - Page 14 News List

Hon Hai team visits Indonesia, eyes investment

Staff writer, with CNA, JAKARTA

A team sent to Indonesia by Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, is in talks with potential partners about an investment project in the Southeast Asian country, a source close to the deal said yesterday.

Hon Hai, also known as Foxconn, is eyeing the fast growing Indonesian market and is ready to flesh out the details of its investment plan with representatives from Indonesia’s telecoms and industrial park development businesses, and the government, according to the source.

BASE

The company is planning to invest US$10 billion in Indonesia over the next five years to set up a base for the production of smartphones, tablet computers and other electronic devices.

Potential partners in Indonesia include Erajaya Swasembada, which operates a broad distribution network of 339 outlets and supplies smartphones to 20,500 vendors.

It is the largest smartphone distributor in the Southeast Asian country, holding a 30 percent market share.

Meanwhile, Hon Hai has also been in talks with Jababeka, an Indonesia-based industrial park developer, on possible cooperation.

GOALS

Jababeka is no stranger to Taiwanese investors and is keen to work with partners to develop investment projects. One of its goals is to work with Taiwan’s International Cooperation and Development Fund to develop Indonesia’s Morotai Island.

The Hon Hai team is expected to meet with representatives of the Indonesian government during their visit this week.

The source said Hon Hai is hoping its Indonesian partners would provide a plot of land big enough to build a production complex, and that the company is willing to provide advanced technology to Indonesia in a bid to upgrade the nation’s industry and accelerate its economic growth.

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