Where in Indonesia Will Foxconn Set Up Its Factory?

The location of Foxconn's Indonesian factory is still under a large question mark. It's been reported that the government is preparing a 1000 hectare land including the infrastructure required to support Foxconn's operations outside of Java. However, Industrial Minister M.S. Hidayat stated on Tuesday that the infrastructure condition outside of Java is not tenable. This means that the industrial city which will be built by Foxconn ideally should be located in Java.

According to Detikinet, Hidayat is reluctant to reveal the location candidates for the factory which some say will be Indonesia's Silicon Valley. He is still waiting for the results of the talks between his team from the Ministry of Industry and the Investment Coordination Board, both of whom are in Taiwan this week to meet representatives of Foxconn.

Based on the requirements of Foxconn's factory, several media today have been speculating as to the viable locations. Aside from the availability of infrastructure such as roads, ports, electricity and internet, the availability of land becomes an important consideration in determining the location. The human resources requirement also factors in as another consideration.

Seputar Indonesia daily today quoted the director general of development and zoning from the ministry of industry, Dedi Mulyadi that one of the alternatives is Cikande in Banten. According to Mulyadi, aside from being near the toll road, easy access to the port becomes an advantage. This area also has the potential to be developed up to 1000 hectares with 370 of which have been made available.

In the meantime, the ministry's director general of international cooperation Agus Tjahjana favors Bandung as the candidate for the location of Foxconn's factory. His reason, Bandung has a supporting facilities, one of which is the Bandung Institute of Technology which is able to produce the human resources for technological development. Detik Finance quoted the director general saying that this makes Bandung similar to Silicon Valley which is supported by universities within the vicinity including Massachussets Institute of Technology (MIT) [more on this ridiculous quote later- Ed]

The private consultants met by Detik Finance have their own individual opinions on the location for Foxconn's factory. Director of Industrial Services for Colliers Indonesia, Rivan manansa mentioned Karawang and Bekasi as candidates. These two areas are supported by the Cikampek toll road for access to and from Jakarta and is relatively near the ports. Aside from that, the industrial zones in the two areas provide good reasons for Foxconn to locate there. Additionally, the industrial zones in Bekasi have been united under an International Economic Zone which has a dedicated facility in dealing with taxation, infrastructure, security, and fiscal.

Colliers Indonesia's Associate Director of Investment Services Aldi Garibaldi thins that Jakarta's southwest region is one of the most prepared candidates to develop Foxconn's factory. Aside from the availability of land, the presence of the Science and Technology Research Center (Puspitek) Serpong can be used to support the information technology industry.

Garibaldi mentioned that Surabaya is also an alternative candidate. The city has toll roads and a port. Surabaya and the surrounding area have developed several industrial zones. If the factory is to be located away from Jakarta, Surabaya seems to be the most likely candidate.

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