Thursday, July 18, 2013

Foxconn's negotiation in Indonesia almost completed

Foxconn Technology Group, a Taiwanese electronics manufacturing company, suspends its investment in Indonesia until the next several months and it demands incentives from Indonesian government.
World-class electronics company, Foxconn planed to build factories to produce electronic components in Indonesia. Minister of Industry MS Hidayat said the plan was just one more step, because the process of negotiation between the government and Foxconn was almost completed.
"The negotiation went well so far. It almost reaches the final stage. We will make a joint statement in August. Few things that have not been completed are the details of the investment," Hidayat said on Friday.
One thing that is a lingering problem is joint venture plan between Foxconn and the local partner. Foxconn needs a partner with local brand to be increased its production, because to create a new brand will be difficult. 
Ministry of Industry tries to propose local poduct, which is derived from state-owned enterprises and private enterprises who will be encouraged to become a national product. Foxconn will help the production and application of technology in the local electronics industry. 
Taiwanese electronics components company will produce 10 million electronic devices, such as mobile phones, televisions and Ipad.
Foxconn investment value reaches 10 billion USD. Foxconn will occupy an area of 5,000 square meters in Modern Industrial Area Cikande, Serang, Banten. It is a former Modernland building which will be renovated in order to operate as a temporary plant in December 2013. 

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