Foxconn Technology Co., Ltd. : Samsung Studying Mobile Phone Plant Construction in Indonesia -Executive
09/14/2012| 05:02am US/Eastern
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By Linda Silaen
JAKARTA--PT Samsung Electronics Indonesia, a unit of South Korea's Samsung Group, said Friday it is studying options to construct a mobile phone plant in the Southeast Asian country, as the Indonesian government courts foreign investment as a means to create jobs and boost the economy.
The company already has a plant for electronic products in the country and is "interested in having a mobile phone plant," Lee Kanh Hyung, the head of the Indonesian subsidiary, said after a meeting between several Korean companies with Indonesian Industry Minister M.S. Hidayat.
Mr. Hidayat said his ministry is prepared to provide various incentives to Samsung for setting up the plant, adding that the government needs to convince potential investors that overlapping regulations and red tape won't hurt their investments.
Both Mr. Hidayat and Mr. Hyung didn't provide any time frame.
Indonesia, with its 240 million population and increasing purchasing power, provides room for global manufacturers.
Last month, Mr. Hidayat said Foxconn Technology Group (2354.TW)--assembler of iPhone and iPad--may start producing cellular phone handsets in Indonesia late this year.
Foxconn said in July it is exploring opportunities in Indonesia. "At this time we have not submitted any project proposals to any authorities or to our board," a group spokeswoman said in an emailed response then.
Write to Linda Silaen at linda.silaen@dowjones.com
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