Hon Hai Precision Industry Co (鴻海精密), an assembler of Apple Inc’s iPhone devices, yesterday said it will continue to look at investment opportunities in Indonesia after it is reported to have canceled plans to invest in a manufacturing plant there.
Citing Indonesian Chamber of Commerce and Industry Chairman Suryo Bambang Sulisto, Indonesian daily Kontan said that Hon Hai has decided to withdraw its planned investment of US$1 billion from the nation because the Indonesian government reportedly rejected a company request for free land.
Hon Hai, also known as Foxconn Technology Group (富士康), declined to confirm or deny the report.
“As we have stated on a number of occasions, Foxconn would consider investments in Indonesia or other markets only if they made commercial sense,” Hon Hai said in a statement.
The company last year said it planned to invest US$1 billion in a manufacturing plant in Indonesia to produce hardware such as smartphones, tablets and televisions.
A source in Hon Hai, who declined to be named, told the Taipei Times that talks with Indonesian authorities had stalled the company’s investment progress in the nation.
“We are still seeking investment opportunities in the country, but officials there have kept changing their minds over Foxconn’s planned investment,” the source said.
Elsewhere, Hon Hai’s investment license in Hanoi was revoked by the Vietnamese government in July after the company failed to make any progress on a US$200 million investment project.
The company received the license to build a plant to assemble smartphones in February 2008 and was to begin operations in 2009.
However, it has not yet started construction of the factory.
Hon Hai said it had a mutual agreement with the Vietnamese government that if the company had not made progress over the plant, the government could revoke Hon Hai’s license.
Separately, Hon Hai is reportedly to invest US$65 million to US$70 million in India’s refurbished online shopping site Greendust.
Hon Hai declined to confirm the investment amount in Greendust, but said the investment is part of the firm’s plan to expand its reach in India.
Hitendra Chaturvedi, founder and chief executive officer of Greendust’s parent company, Reverse Logistics, was quoted by the Hong Kong-based Economic Times as saying that Reverse Logistics is in talks with Hon Hai over the deal, which is yet to be finalized.
Hon Hai’s stock price fell 2.92 percent to NT$89.8 in Taipei trading yesterday, underperforming the TAIEX, which lost 1.92 percent.
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