Foxconn Technology denies termination of $1B investment in Indonesia

By MoneyTimes

Sep 02, 2015 10:13 PM EDT

Foxconn, the electronics company headquartered in Taiwan, has pulled out $1B investment to Indonesia, rumors have it. But according to a report, Foxconn claims they haven't cancelled it yet.

Earlier on, Foxconn announced it plans to convey $1B investment in Indonesia. But Suryo Bambang Sulisto, the Indonesian Chamber of Commerce and Industry Chairman said this is not probable at this time.

Sulisto said Foxconn had requested a free land in Jakarta to swap over with the company's $1B investment. Apparently, as part of Indonesian President Joko Widodo's vision to transform Indonesia to a country that yield products, the new law to be implemented in 2017 requires tablets and smartphones manufacturing firms to produce 40% of its products in the country, Tech Eye reported.  

Foxconn allegedly pulled out its investment plan to produce tablets, phones, televisions and telecom services in Indonesia because of land issues. It says the authorities did not accept Foxconn's demand of free land in Indonesia.

That being said, Tech In Asia reported that Foxconn declined the land in East Jakarta because it is too pricey. Sulisto confirmed that the top manufacturer is considering Malaysia instead.

"We have plenty of land, we should have been able to give them some," Sulisto said.

On the contrary Reuters stated that Foxconn Technology Group hasn't come up with the decision yet, upholding that Foxconn would still consider investing in Indonesia "if they made commercial sense."

"We will continue to look at investment opportunities in Indonesia as we do in a number of other markets, and would provide updates only if the company has anything to announce regarding its investment plans," Foxconn commented regarding the matter.

Hon Hai Precision, the parent company of Foxconn previously issued a general agreement for the Indonesian government to collaborate with facilitation, land portion and pricing. Foxconn targets to draw on the Indonesian market and to export content to its neighboring countries in Southeast Asia.

Foxconn Technology is the leading manufacturer of Xiaomi phones, Apple's iPhones and iPads, Sony's PlayStations, Amazon's Kindles and Microsoft's Xbox.

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics