Indonesia Agency Says Foxconn 'Not Serious' About Investment
JAKARTA, INDONESIA -- The promise of billions of dollars in investment by Foxconn into Indonesia has the Indonesian Employers Association skeptical. The agency known as Apindo has reportedly told the Indonesian government that Foxconn is "not serious" about its investments here, according to reports.
“The company has been in discussions with our government for several years, but nothing has been firmly agreed to as yet. It seems that the firm is not serious about its plan to invest in the country,” said Apindo chairman Sofjan Wanandi, according to a report in The Jakarta Post.
Foxconn's overtures were for show, while the real investment continues to go into China, he added.
While some media reports pegged Foxconn's intended investment in Indonesia in the tens of billions, the actual letter of intent the EMS signed committed only $1 billion over a three to five year time span. In exchange, the Indonesian government promised access to 200 hectacres of land in North Jakarta. Foxconn wanted the land for free, however, a deal the government cannot unilaterally make.
Foxconn's investment is pending an agreement on the land, and Apindo says it's a deal the government should walk away from.
"Don’t let ourselves be fooled by Foxconn, they are not the only one," Sofjan said. "There are other better electronic device manufacturers that want to invest here if they [Foxconn] don’t want to,” he said.
