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iPhone maker Foxconn to pump $1bn into new Indonesian factory

Production shifts away from China as US invasion looms

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Foxconn is planning to spend up to $1bn building a new factory in Indonesia.

The firm responsible for making Apple's iPhone has signed a letter of intent which will see it build a new factory in Jakarta.

The facility is expected to open its gates some time in the next five years and will contain manufacturing and assembly production lines, as well as R&D and electronics design departments.

The infrastructure is known to be better in the Jakarta region than in other parts of Indonesia, which is likely to have been a key factor in Foxconn's decision.

A spokesman for Hon Hai Precision Industry, as Foxconn is formally known, said: "We plan to come up with detailed investment plans for the Indonesian and Jakarta authorities in three months."

Foxconn is pivoting away from China, where it currently employs more than a million people, after concerns were raised about working conditions for its factories' staff.

The fruity fabricator recently announced plans to open production facilities in the US, describing America as “a must-go market”.

It is expected to spend $40m on this stateside invasion. ®

Internet Security Threat Report 2014

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