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Govt yet to receive update on Foxconn's cancelation
Amid reports that Taiwanese technology giant Foxconn might have canceled its plan to build a factory in Indonesia, the government has stated that it has not received any formal updates from the firm
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mid reports that Taiwanese technology giant Foxconn might have canceled its plan to build a factory in Indonesia, the government has stated that it has not received any formal updates from the firm.
'No, we haven't heard any of that ['¦],' said I Gusti Putu Suryawirawan, the Industry Ministry's director general of metal, machinery, transportation equipment and electronic industries, when asked whether Foxconn had formally canceled its plan.
Putu said on Tuesday that the Taiwanese firm also had not filed a request to meet with his ministry.
Reports from a number of media outlets have cited Indonesian Chamber of Commerce and Industry (Kadin) chairman Suryo Bambang Sulisto as saying that the Apple Inc supplier had canceled its US$1 billion investment plans in Indonesia as no agreement had been reached with the Indonesian government over the land price.
A source familiar with the matter told The Jakarta Post on Tuesday that Foxconn had not issued an official statement on whether it would continue or cancel its investment plan in Indonesia.
'I haven't heard of an official statement from the company,' said the source, who works with Foxconn.
Industry Minister Saleh Husin said previously that he had not received a formal statement from Foxconn but told reporters that the company had requested free land, a matter which the government and the firm had disagreed on.
Foxconn, whose flagship listed unit is Hon Hai Precision Industry Co. Ltd., produces electronic components for various trademarks, including Apple, Acer, Dell and Intel.
In February last year, Foxconn signed a non-binding letter of intent with the Jakarta administration, agreeing to invest around $1 billion in the country.
The company previously eyed a 200-hectare plot of land in Marunda, North Jakarta to establish its first factory in the country, which is expected to bring its products closer to the Southeast Asia market.
A wave of investment from a number of Taiwanese companies is striking into the country, with some already signing memorandum of understandings (MoUs) with local companies to build joint ventures.
Taiwanese investment in Indonesia hit $85.09 million for the period of January-June of this year, according to data from the Investment Coordinating Board (BKPM).
