T

aiwan-based Quanta Computer Incorporated, the world’s biggest contract laptop personal computer (PC) maker, is exploring local investment opportunities, according to an official.

The firm would likely establish a presence in Indonesia by building a plant in the Bintan Free Trade Zone in Riau Islands, according to Investment Coordinating Board (BKPM) deputy director Tamba Hutapea.

“The company has yet to apply for a permit from the BKPM, as it is still assessing possibilities. Perhaps the permit will be issued by the Bintan Free Trade Zone and Free Port Administration Board,” Hutapea said on Tuesday.

Founded by Barry Lam in 1988, the manufacturer of notebook and other electronic hardware currently supplies products to customers in the European Union, Japan and the US. Its corporate customers include Apple Inc., Dell Inc., and Fujitsu.

From January to August this year, the firm recorded a US$21.41 billion in unconsolidated sales.

Trade Minister Gita Wirjawan, who formerly chaired the investment board, said that Quanta might invest billions of dollars in Indonesia over the long run, although in the initial phase, its investment would likely be limited.

“They [Quanta] may come in the next few months. The [Riau Islands] governor has reported that there’s already been quite substantive talks on the planned investment,” Gita said on Tuesday after signing an agreement on rice sales with Vietnamese officials in his office.

The firm was currently assessing land acquisitions in Bintan, according to Gita, who said that the firm had yet to submit applications to the investment board.

According to Gita, Quanta would likely make the proposed Indonesian plant into a production base to serve the regional market and to fulfil local demand.

In a recent interview, the director-general of the Taiwan Bureau of Foreign Trade, Cho Shih-chao, said that several Taiwanese firms have been looking to invest in Indonesia.

Quanta’s move comes after Taiwanese electronic powerhouse Foxconn Technology Group, the world’s largest electronics manufacturer, announced similar local investment intentions.

Foxconn previously announced plans to open a plant in Cikande in Serang, Banten, with an investment estimated to top $10 billion over several years.

The company is set to open the plant in December and wants to produce 3 million cell phones a year here in the plant’s inaugural phase, according to government officials. Foxconn comprises around 40 percent of the global electronics output.

Analysts said that Foxconn’s entry into Indonesia will significantly transform the landscape of the local electronics industry, which currently relies heavily on component imports, particularly from China, while much of local production process is limited to assembly.

At the same time, the investment will help shift the nation’s focus from labor-intensive industries, such as footwear and textiles, to more-capital intensive industries, such as machinery, electronics, and information and communications technology.

Indonesia, Southeast Asia’s largest economy, continues to lag behind Malaysia and Thailand in terms of encouraging local investment from advanced manufacturing companies.