REPUBLIKA.CO.ID, JAKARTA - Foxconn Technology Group, a Taiwanese electronics manufacturing company, suspends its investment in Indonesia until the next three or six months. Minister of Industry, MS Hidayat, stated that some issues had caused the step taken by the company.
"Foxconn makes more bids on some policies," Hidayat said on Monday.
Foxconn demands more incentives, such as free import duty and other taxes. Government said that the matter was being discussed. Other factors are the absence of agreement with local partner and area.
Foxconn planned to build a manufacture in Cikande, Banten, in the end of 2012. The company will produce up to 10 million units of electronics per year. Total value of the investment is worth 10 billion USD. Hidayat asssured that the suspension had nothing to do with workers demonstration in Indonesia.
Security reason
Deputy Chairman on Research Industry and Technology at Indonesian Chamber of Commerce, Bambang Sujagad, said Foxconn was exaggerating the issue because there were many local partners ready to cooperate. He added that investment should have been proceeded as planned while the incentive required by Foxconn was under consideration.
"Simply, they can contact Indonesian Chamber of Commerce if they want to seek partners," he said.
He presumed that the real reason was due to security guarantee. Meanwhile, Coordinating Minister of Economy Hatta Rajasa emphasized that the suspension was because of internal matters.
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