Indonesia new production hub for Apple

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Indonesia will see investments of up to $10 billion over the next 10 years as Taiwanese electronics manufacturer Hon Hai Precision Industry, or Foxconn, Apple’s core manufacturing partner, enters the country.

In a first move, Foxconn will begin investing about $1 billion into a factory in Indonesia by early next year, according to the country’s Industry Minister M.S. Hidayat. The factory is expected to create up to 1 million jobs for Indonesians, and Foxconn is looking to pay them $100 a month to assemble Apple gadgets such as iPhones, iPads, notebooks and desktop computers.

Foxconn is reportedly moving to Indonesia to benefit from the lower wage levels compared to China, where the majority of its production bases are located and wages have doubled over the past years.

The new Indonesia factory will most likely be located in Central or Eastern Java, said Sanny Iskandar, chairman of the Indonesian Association of Industrial Zones.

“We are looking forward to establish a new manufacturing plant in Indonesia, although nothing is finalised yet”, a Foxconn representative said in a statement earlier this month obtained by Inside Investor.

“This will help us in manufacturing good quality products and make them available in the markets at lower prices. With this, Indonesians will also get better employment opportunities. We will continue our efforts in establishing more manufacturing plants across the globe”, the statement added.

For the rest of the investment, Foxconn is currently evaluating what kind of other opportunities Indonesia can provide the company.

According to Foxconn spokesman Simon Hsing, the Indonesian government is keen to have Foxconn build up a larger electronics industry in the country.

Foxconn would target its investment to build electronics for Indonesia’s domestic market, selling the products to local consumers with the help of a partner, Hsing said.

Foxconn has factories in the US, Europe, Japan, China, India, Malaysia, Brazil and Mexico that manufacture many of the world’s electronics for export to other countries. A recently set up Brazil factory near Sao Paolo is manufacturing a new iPad variant. Foxconn’s contract manufacturing includes products for Apple, Acer, Cisco, Dell, Hewlett-Packard, Intel and Microsoft, among others.

The company is the world’s largest electronics manufacturing services (EMS) provider ahead of Flextronics (Singapore), Jabil Circuit (US), Celestica (Canada) and Sanmina-SCI (US).

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Reading Time: 2 minutes

Indonesia will see investments of up to $10 billion over the next 10 years as Taiwanese electronics manufacturer Hon Hai Precision Industry, or Foxconn, Apple’s core manufacturing partner, enters the country.

Reading Time: 2 minutes

Indonesia will see investments of up to $10 billion over the next 10 years as Taiwanese electronics manufacturer Hon Hai Precision Industry, or Foxconn, Apple’s core manufacturing partner, enters the country.

In a first move, Foxconn will begin investing about $1 billion into a factory in Indonesia by early next year, according to the country’s Industry Minister M.S. Hidayat. The factory is expected to create up to 1 million jobs for Indonesians, and Foxconn is looking to pay them $100 a month to assemble Apple gadgets such as iPhones, iPads, notebooks and desktop computers.

Foxconn is reportedly moving to Indonesia to benefit from the lower wage levels compared to China, where the majority of its production bases are located and wages have doubled over the past years.

The new Indonesia factory will most likely be located in Central or Eastern Java, said Sanny Iskandar, chairman of the Indonesian Association of Industrial Zones.

“We are looking forward to establish a new manufacturing plant in Indonesia, although nothing is finalised yet”, a Foxconn representative said in a statement earlier this month obtained by Inside Investor.

“This will help us in manufacturing good quality products and make them available in the markets at lower prices. With this, Indonesians will also get better employment opportunities. We will continue our efforts in establishing more manufacturing plants across the globe”, the statement added.

For the rest of the investment, Foxconn is currently evaluating what kind of other opportunities Indonesia can provide the company.

According to Foxconn spokesman Simon Hsing, the Indonesian government is keen to have Foxconn build up a larger electronics industry in the country.

Foxconn would target its investment to build electronics for Indonesia’s domestic market, selling the products to local consumers with the help of a partner, Hsing said.

Foxconn has factories in the US, Europe, Japan, China, India, Malaysia, Brazil and Mexico that manufacture many of the world’s electronics for export to other countries. A recently set up Brazil factory near Sao Paolo is manufacturing a new iPad variant. Foxconn’s contract manufacturing includes products for Apple, Acer, Cisco, Dell, Hewlett-Packard, Intel and Microsoft, among others.

The company is the world’s largest electronics manufacturing services (EMS) provider ahead of Flextronics (Singapore), Jabil Circuit (US), Celestica (Canada) and Sanmina-SCI (US).

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