Foxconn to invest $1 billion in Indonesia in order to build factories

Foxconn, the Taiwanese maker of Apple’s iPhones, has signed a letter of intent to invest up to $US1 billion in Indonesia, officials said. The Taipei-based technology giant is also known as Hon Hai Precision Industry which is the world’s largest contract electronics maker. It said the investments would be in Jakarta province, which has better infrastructure than other regions of the country.

Manufacturing giant Foxconn Technology Group is investing US$1 billion to build factories in Indonesia, in the company’s latest step to address a major handset market in Asia. Foxconn plans to make the investment over a three to five year period, and has signed a letter of intent with the government of Indonesia, the company said Saturday. The Taiwanese manufacturer has already sent a team to Indonesia’s capital to plan the factories. In about three months, the company will release a detailed proposal to the nation’s authorities. Foxconn has been in talks with Indonesian officials to build the manufacturing facilities since 2012. But unlike its other factories in China that build products for international markets, these new facilities would assemble products for local Indonesian consumers.

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