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Hon Hai says plans to build factory in Indonesia progressing well

2013/12/21 21:56:09

Jakarta, Dec. 21 (CNA) Hon Hai Precision Industry Co., the world's largest contract electronics maker, has made progress in its investment plans for Indonesia and will choose either Jakarta or the Yogyakarta Special Region to build a handset plant, a company spokesman said Saturday.

Simon Hsing, who is responsible for the Hon Hai investment project in Indonesia, said that while some local governments in Indonesia are willing to provide a free site for the plant, the company will consider the land offers made by the Jakarta and Yogyakarta governments.

Hon Hai Chairman Terry Gou plans to visit Indonesia in February 2014, when he will disclose other relevant information about the investment project, Hsing added.

After attending the CEO summit of the annual Asia Pacific Economic Cooperation forum in October in Bali, Indonesia, Gou said Hon Hai will launch a five-year investment project in Indonesia in 2014, which will include a handset factory.

A source familiar with the project said that Hon Hai had originally planned to seek a construction site in Jakarta for the plant and was hoping that the company's cooperative partners would provide the land free of charge.

However, the plan had stalled due to difficulties in securing land in the greater Jakarta area and the cumbersome procedures for land expropriation, the source said.

During a recent meeting with Gou, Jakarta Governor Joko Widodo expressed support for Hon Hai's plans to set up a factory for the production of mobile phones and other devices.

Meanwhile, the Jakarta government said it was willing to provide free land in Malunda for Hon Hai to build the plant.

The Yogyakarta government has also made a similar offer, according to the source.

(By Jay Chou and Y.L. Kao)