Jakarta, Aug. 15 (CNA) The Hon Hai Group, the world's largest contract electronics maker, is planning to set up a factory in Indonesia this year, a spokesman for the group said Wednesday.
The new factory, likely to be established by year-end, will be making products specifically for the Indonesian market, Hon Hai spokesman Simon Hsing told CNA.
However, details such as the location of the plant and its production output have not yet been finalized, Hsing said, responding to reports that the group planned to invest US$5 billion -US$10 billion in the project over a five- to 10-year period.
The group, also known as Foxconn, will start with the assembly and production of 3 million handsets per year in Indonesia, the reports said, citing that country's Trade Minister Gita Wirjawan.
Hsing said 12 Hon Hai executives are currently in Indonesia for discussions with officials on the factory.
The Indonesian government has agreed to help Hon Hai find corporate partners in the country and identify a site for the new plant, he said.
Indonesia, with a population of 240 million people, has tremendous potential for growth in domestic demand, Hsing said, noting that it spends more than US$1 billion per year on imported cell phones.
The Southeast Asian country is also trying to attract foreign investment to strengthen its high-tech capabilities, he said.
(By Jay Chou and Hanna Liu)