"Foxconn has decided to postpone implementation of the plan for six months as there has been no agreement on the requirements set by the Taiwanese company," Industry Minister M.S. Hidayat said here on Monday.
Foxconn is required to cooperate with a local partner, which is later expected to produce the components as a local product, Hidayat said.
In addition, Foxconn and the Indonesian government have yet to agree on certain requirements and stipulations, he said.
The regulations are being discusses between related government agencies, he said.
He said originally Foxconn hoped to operate in the country since mid 2011.
Operations of Foxconn in Indonesia is expected to lead to the country producing own handphones, he said.
Currently Foxconn has a factory in China and has bought 142 hectares of land in Brasil.
It is eying a land plot in Cikande , Banten, to build a factory.