Minister of Investment/Head of Investment Coordinating Board Bahlil Lahadalia says Taiwan’s company Hon Hai Precision Industry Co.Ltd or Foxconn’s investment plan in Indonesia is still under negotiation.
“In the near time, I and my team will depart to Taiwan to negotiate more in the Foxconn’s investment plans,” Bahlil told repoters on April 29, 2024.
He cited that there are still one or two issues that he still has to match with the proposal by the company.
“Foxconn is one of the investors that we want because they are one of the world’s largest companies,” Bahlil said, adding that approximately 10 to 15 percent of the company ‘s products contribute to Taiwan’s export to the world.
As reported by CNBC Indonesia, Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia and President Joko “Jokowi” Widodo followed up on the MoU related to the investment plans of Foxconn, Gogoro, PT Industri Baterai Indonesia (IBC), and PT Indika Energy in Indonesia.
The value of the investment plan is US$8 billion (Rp118.4 trillion) and the estimated employment of more than 10,000 people.
Bahlil revealed that President Jokowi highly appreciated the investment plan of Hon Hai Precision Industry Co. Ltd (Foxconn) which will collaborate with state-owned enterprises and the national private sector, involving local entrepreneurs and MSMEs.
Meanwhile, the investment plans of Foxconn, along with Gogoro, IBC, and Indika include the electric vehicle industry: four-wheeled, two-wheeled, and electric bus electric vehicles; electric vehicle battery industry; and supporting industries: energy storage system, battery exchange station, battery recycling industry, Research & Development (R&D) and training.
Batang and new State capital
Bahlil, as reported by CNBC Indonesia, encouraged Foxconn’s investment plan to be located in the Batang Integrated Industrial Zone (KIT), Central Java with various incentives offered by the Indonesian Government. KIT Batang is one of the locations that is part of the development of the battery and electric vehicle industry ecosystem in Indonesia, where investments have entered from Hyundai and LG from South Korea.
In addition, Bahlil also stated that Foxconn is also interested in investing in the Nusantara Capital City (IKN).
“Hopefully, it can really happen and go well. They also want to invest in IKN. So it’s not true if someone says IKN has no investment. Many are coming in,” he said.
