Hon Hai Plans to Invest US$10B. in Indonesia

Taipei, Aug. 16, 2012 (CENS)--Gita Wirjawan, Indonesia's minister of trade, pointed out that the Hon Hai Group will invest up to US$10 billion in Indonesia in the next five to 10 years, mainly for the production of mobile phones, e-readers, and tablet-PCs, according to wired services.

Terry Guo, chairman of Hon Hai Group, is visiting Indonesia for three to four days to inspect its investment climate and is scheduled to return to Taiwan today (Aug. 16). Hon Hai stated that accompanied by representatives from Taiwan trade and economic representative office and Indonesian officials, Guo is studying the Indonesian market. Both the Indonesian government and Hon Hai are quite enthusiastic about the project but it needs further evaluation to determine the actual investment value and items.

According to wired services in Indonesia, Gita reported that Hon Hai will invest US$5-10 billion in the next five to 10 years for producing mobile phones, e-readers, tablet PCs, and smart TVs. The investment will be carried out in stages, with the annual capacity for the first stage from October this year reaching 3 million mobile phones and the capacity for the second stage from July 2013 topping 10 million mobile phones.

Initially, Hon Hai will focus on the production of mobile phones and will extend to the production of e-readers, tablet PCs, and smart TVs later on. Meanwhile, Foxconn, subsidiary of Hon Hai, plans to break ground on the construction of an assembly plant in Indonesia in December this year and is talking with Industri Telekomunikasi Indonesia (INTI) for a joint venture for producing electronic products and telecommunications equipment.

Hon Hai's Indonesian operation will aim to meet the domestic demand of the nation initially, which now imports 40-50 million mobile phones a year.