Hon Hai signs letter of intent to invest in Jakarta (update)
Central News Agency
2014-02-07 10:56 PM
Jakarta, Feb. 7 (CNA) The chairman of Taiwan-based Hon Hai Precision Industry Co., the world's largest contract electronics manufacturer, signed a letter of intent to invest in Indonesia on Friday. Hon Hai Chairman Terry Gou signed the letter with Jakarta Governor Joko Widodo, sealing his commitment to invest in the Jakarta area, but he did not provide specific details on the size of the investment or the type of facility to be built. Sources from the Taiwan-based company said, however, that Hon Hai will invest at least US$1 billion in Jakarta in the next three to five years, and that the investment will absorb part of the young labor force in Jakarta and other regions. Widodo welcomed Hon Hai's move into Jakarta to invest in the high-tech sector and said the city will send representatives to Taipei to complete related procedures.

He hoped that the deal would help Jakarta develop high value-added industries and high-end manufacturing. Though acknowledging that Jakarta's infrastructure needed to improve, Gou said he was not worried about the traffic congestion in the city and believed that the mass rapid transit and light rail systems under construction would be completed in five to six years. Hon Hai 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 investments in Indonesia will not be confined to one single product, and could cover such products as mobile phones, educational tablet, and TV walls and possibly even e-commerce and 4G items. Hon Hai was said to be interested in getting 200 hectares of land north of Jakarta, but Indonesian authorities said they would initially supply only a part of that to the electronics manufacturer.

Reuters cited Sattar Taba, president director of the state-owned logistics and industrial parks developer as saying the city would initially provide 20 hectares of land to Hon Hai. (By Jay Chou and Lilian Wu)

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