Foxconn should be meted out the same treatment as others: Dahlan

Foxconn should be meted out the same treatment as others: Dahlan

Dahlan Iskan. (ANTARA/Rosa Panggabean)

It should be business-to-business, so that all the aspects are clear and will not create a problem later on."
Jakarta (ANTARA News) - State-owned Enterprises Minister Dahlan Iskan supports the plan of Foxconn Technology Co. Ltd. to invest in Indonesia by cooperating with the bonded zone developer, PT Kawasan Berikat Nusantara (KBN) as the provider of factory land.

"The KBN can establish cooperation with Foxconn, provided that it does not offer excessive facilities to Foxconn, which can create a sense of jealousy among other investors," the minister noted here on Tuesday.

Dahlan stated that the cooperation, which also involved the regional government of Jakarta, should lay emphasis on the business aspect.

"It should be business-to-business, so that all the aspects are clear and will not create a problem later on. The problem is that Foxconn is a major investor, hence cooperation requires better level of governance," the minister pointed out.

It was earlier reported that Foxconn, a Taiwanese information technology company, announced its readiness to invest US$1 billion in the coming three to five years towards building a factory for the production of electronic products in Indonesia.

The investment will cover research and development, electronic and manufacturing software designs, and manufacture and assembly of electronic products.

The manufacturing facility with be based in Jakarta, since it offers better infrastructure as compared to that of the other provinces.

The Jakarta regional government has expressed interest to provide a 200-hectare plot of land belonging to the KBN. The minister remarked that as long as the cooperation is advantageous and gives priority to the national interest, it will be supported.

"In principle, the KBNs actions should not raise any sort of complaints among other investors. Equal facilities should be offered to the investors," the minister stressed.

So far, the foreign investors in Indonesia were able to make huge profits from their investments in a number of business sectors including telecommunication, automotive, banking, and cosmetic industries.

"Many foreign investors earned huge profits from their investments in Indonesia," Indonesian Finance Minister Chatib Basri recently claimed.

He noted at a seminar themed "The Challenge from Quantitative Easing to Economic Management in Southeast Asia: Indonesias Experience."

During the seminar, the minister noted that the high profit margins have motivated the foreign investors to run their businesses in Indonesia.

Therefore, Chatib was optimistic that the investors will not take all the profits back to their respective countries, but instead, will reinvest in Indonesia.

According to him, the Government of Indonesia is currently drawing up a policy to provide incentives in the form of dividend tax relief to the foreign investors who will reinvest their profits in the country.

"The Ministry of Finance is preparing the policy, which will be ready for implementation within the next two months," the minister asserted.

Further, Chatib added that the foreign investors who reinvest their profits in Indonesia will help in strengthening the rupiah exchange rate.

He pointed out that currently, a number of Malaysian investors in Indonesia are investing in various sectors such as banking, telecommunication, and the palm oil industry.