Hon Hai team in Indonesia to meet with potential partners
CNAJAKARTA--A team sent to Indonesia by Hon Hai Precision Industry Co., the world's largest contract electronics maker, is currently in talks with potential partners about an investment project in the Southeast Asian country, a source close to the deal said Thursday.
September 20, 2013, 12:21 am TWN
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 telecom and industrial park development businesses and the government, according to the source.
Hon Hai spokesman Simon Hsing, who is on the delegation, is acting as the communication person between the company and the Indonesian side, the source said.
Hon Hai is planning to invest US$10 billion in Indonesia over the next five years to set up a base for the production of cell phones, tablet computers and other electronic devices, but the project cannot get off the ground until the details have been worked out.
The potential partners in Indonesia include Erajaya Swasembada, a leading cell phone distributor and retailer.
Erajaya Swasembada operates a broad distribution network of 339 outlets and supplies cell phones to 20,500 vendors in Indonesia. It is the largest cell phone 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.
Jababeka is no stranger to Taiwanese investors and is keen to work with Taiwanese 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 will provide a plot of land big enough to build a production complex, and the company is willing to provide advanced technology to Indonesia in a bid to upgrade the country's industry and accelerate its economic growth.
Hon Hai is hoping that its cloud-based technology will help to connect Indonesia's huge population and that its cell phones, tablet computers and notebook computers will contribute to the development of a smart city there, according to the source.
The source said Hon Hai continues to explore other cooperation opportunities in Indonesia by making contact with other potential partners.