BKPM: Foxconn Interested In Investment In Smart City Development IKN Nusantara

Minister of Investment/Head of BKPM Bahlil Lahadalia (left) and Chairman of Hon Hai Precision Industry Co. Ltd (Foxconn) Young Liu (right). (ANTARA/HO Ministry of Investment/BKPM)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said Hon Hai Precision Industry Co. Ltd. (Foxconn) is interested in investing in the nation's capital city (IKN) Nusantara, particularly the development of a smart city in the new capital city.

Foxconn expressed interest in developing smart cities through electric bus (e-bus) infrastructure and IoT (Internet of Things) networks.

This was conveyed by Bahlil after accompanying the Chairman of Hon Hai Precision Industry Co. Ltd. (Foxconn) Young Liu met with President Joko Widodo at the Bogor Palace, Saturday (25/6) morning.

"Hopefully it can actually happen and go well. They also want to invest in IKN. So it's not true if someone says IKN has no investment. Many have entered," Bahlil said in a written statement quoted by Antara, Saturday, June 25.

The meeting with President Jokowi discussed the follow-up to the previously agreed Memorandum of Understanding regarding the investment plans of Foxconn, Gogoro, PT Industri Battery Indonesia (IBC), and PT Indika Energy Tbk in Indonesia.

There is also the value of the investment plan of 8 billion US dollars and an estimated employment of more than 10,000 people.

In the results of the meeting, Bahlil said President Joko Widodo highly appreciated Foxconn's investment plan which will collaborate with State-Owned Enterprises (BUMN) and national private companies by involving local entrepreneurs and Micro, Small and Medium Enterprises (MSMEs).

The Ministry of Investment/BKPM has been ordered to oversee Foxconn's investment plan until it is realized.

"The President ordered me to immediately oversee the execution stage. The President hopes that this will be realized soon and one concept that the president likes the most is the collaboration of BUMN, PMA (foreign investment) and the national private sector involving local entrepreneurs and MSMEs," said Bahlil .

Bahlil encouraged Foxconn's investment plan to be located in the Batang Integrated Industrial Estate (KIT), Central Java, with various incentives offered by the Indonesian government.

KIT Batang is one of the locations that is part of the development of the battery and electric vehicle industrial ecosystem in Indonesia, where investment from Hyundai and LG from South Korea has now entered.

Foxconn Chairman Young Liu expressed his appreciation for the support of President Joko Widodo and the Minister of Investment/Head of BKPM who will fully facilitate Foxconn's investment. Foxconn offers a new business model, namely BOL (Build, Operate, Localize) for its investment in Indonesia.

"The new BOL business model will allow Foxconn and other Taiwanese companies to better partner with Indonesian companies in building the industry here," he said.

Chairman Young expressed his confidence that this collaboration between Foxconn and the Indonesian government could achieve great success.

Foxconn, Gogoro, IBC, and Indika plan to invest in the electric vehicle industry, namely electric four-wheeled vehicles, two-wheelers, and electric buses; electric vehicle battery industry; and supporting industries: energy storage system, battery exchange station, battery recycling industry, Research & Development (R&D) and training.

The Memorandum of Understanding between the Ministry of Investment/BKPM, Foxconn, Gogoro, the Indonesian Battery Industry (IBC), and Indika Energy was signed on January 21, 2022.

The agreed collaboration includes the development of a new sustainable energy ecosystem through investment in electric batteries, electric vehicles and various supporting industries through the BOL cooperation scheme in Indonesia.