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Indonesia might make concessions to Hon Hai to get investment

Indonesia might make concessions to Hon Hai to get investment

Jakarta, Oct. 6 (CNA) The Indonesian government might compromise with Taiwan's Hon Hai Precision Industry Co. on several investment requests made by the company because the country needs to upgrade its manufacturing industry, according to an Indonesian official. Hon Hai, the world's largest contract electronics manufacturer, also known as Foxconn Technology Group, signed a letter of intent in February this year to invest at least US$1 billion in Jakarta over the next three to five years. Himawan Hariyoga, deputy chairman of the Indonesian Investment Coordinating Board, said in an interview recently that "such an investment project (like Hon Hai's) is highly needed in Indonesia" because by producing high-tech products it will enable the country to be more closely connected to the global market. The Indonesian government might consider offering concessions to Hon Hai on several investment terms, including a tax exemption period, through negotiations across Indonesian ministries and departments, Hariyoga said. Edy Putra Irawady, Indonesia's deputy minister for industry and trade, said that although it would be difficult to acquire the 200-hectare plot of land in the Jakarta area requested by Hon Hai, the Indonesian government could help Hon Hai find alternative land in other provinces. Hon Hai responded late Monday that it was "optimistic" about its investment project being welcomed by Indonesia. Hon Hai, a major assembler of Apple Inc.'s iPhones and iPads, intends to use Jakarta as its gateway into Indonesia. But company sources said it will continue to assess the group's core businesses and tap markets in other Indonesian cities. Industry sources said that Hon Hai's investment in Indonesia will not be confined to one single product, and could cover such products as mobile phones, educational tablets, and TV walls and possibly even e-commerce and 4G items. (By Jay Chou and Jeffrey Wu)


Updated : 2021-05-09 22:41 GMT+08:00