Sat, Jan 04, 2014 - Page 14 News List

Jakarta hoping for Hon Hai deal

LOCATION, LOCATION, LOCATION:The contract electronics maker is expected to build a mobile plant in Indonesia and is deciding between sites in the capital and Yogyakarta

Staff writer, with CNA, Jakarta

Jakarta Governor Joko Widodo is focused on bringing Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, to the Indonesian capital, but said yesterday that all high-tech manufacturers from Taiwan are welcome to invest in the region.

Hon Hai, also known as Foxconn, is reportedly interested in investing US$10 billion in Indonesia, starting with a mobile phone plant. The firm is expected to decide soon whether it will be built in Jakarta or Yogyakarta.

In an interview with CNA, Joko said the Jakarta government was willing to provide land in northern Jakarta for Hon Hai to set up a factory, as well as infrastructure facilities and a high-quality workforce.

Hon Hai asked the government for 200 hectares of land, and Joko said Jakarta could currently provide 80 hectares of land and would meet any further needs by reclaiming land from the sea.

Joko, whom polls indicate could be elected Indonesia’s next president in July, described high-tech investment as very important for the city and said he would guarantee Hon Hai help on infrastructure and labor issues.

In more general terms, Joko said the Jakarta government has tried to make the region more appealing to Taiwanese investors by streamlining application procedures for foreign businesses that allow them to get investment permits within two months.

According to Indonesian government figures, Taiwanese companies invested US$15.12 billion in the country between 1967 and the end of March last year, making it the ninth-largest investor there during that period.

Taiwan was the 10th largest investor in Indonesia in 2012, injecting US$646.94 million into the country.

Taiwanese businesses mainly invest in food, mineral, basic metal, machinery, textile and trading businesses. Joko, 52, has gained media attention for his strong performance as mayor of Surakarta between 2005 and 2012.

In 2012, he took third place in the 2012 World Mayor Project for “transforming a crime-ridden city into a regional center for art and culture and an attractive city to tourists.”

He recently opened sizable leads in polls for the upcoming Indonesian presidential elections, and The Economist predicted he will be elected the country’s next president.

However, Joko’s party, the Indonesian Democratic Party of Struggle, has yet to choose its nominee for the election.

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