Mike King, Special Correspondent | Jun 28, 2012 11:25AM EDT
Electronics giant Foxconn plans to build a giant factory in Indonesia, and as a result, could employ as many as 1 million people in the country.
The Taiwanese manufacturer is best known for its super factories in China, best known for assembling electronic goods for leading brands including Apple.
“[Foxconn] will enter Indonesia, bringing along technology, and will need some 1 million workers,” said Indonesia’s Industry Minister M.S. Hidayat. “The investment is estimated to be worth more than $1 billion.”
He told local media that Foxconn’s preferred location was Java, where Foxconn is currently conducting a feasibility study. “But I would prefer that they build the factory outside Java island,” he added. “If they do so, I will give them incentives of tax holiday, tax allowance and other facilities.”
Indonesia has ample low-cost labor but currently lacks infrastructure, including roads, ports and airports that Foxconn would require, although a new factory could also supply the sizeable and growing Indonesian domestic market.
“They will enter in a very large size, so they need a place that can actually meet their needs,” said Sofjan Wanandi, head of the Indonesian Employers Association (Apindo). “Apindo’s role will be to facilitate their need to find a good Indonesian company as a partner and to settle the infrastructure and space issues.”
Contact Mike King at michael@borderline.eu.com.
