Investment Minister and Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, third from right, shows a souvenir after a meeting with Hon Hai Precision Industry's and Gogoro'e top executives in Taipei, Taiwan on Oct 22, 2021. (Photo courtesy of BKPM)
Taiwan's Foxconn, Gogoro Seek Entry Into Indonesia's EV Industry
BY :JAKARTA GLOBE
OCTOBER 24, 2021
Jakarta. Taiwan's Foxconn Technology Group, the world's largest electronic components maker, has expressed interest in investing in Indonesia's battery and electric vehicle industries, the Southeast Asian country's top investment minister, said on Sunday.
The company expressed its intent in a meeting between the Investment Minister and Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia and Young Liu, the chairman of Foxconn's listed flagship company Hon Hai Precision Industry in Taipei, last Friday.
The chief executive officer (CEO) and founder of Taiwan's electric scooter company Gogoro, Horace Luke, also attended the meeting. Gogoro is currently partnering with Foxconn in smart batteries, vehicle engineering, and manufacturing projects, Gogoro said on its official website.
"Following the direction of President Joko Widodo, we look forward to Foxconn's cooperation in Indonesia because it is in line with the big vision in carrying out economic transformation to create added value," Bahlil said in a statement.
"Development of the battery industry from upstream to downstream is the right approach," Bahlil said.
Foxconn's Liu said the company planned to build an integrated electric battery and four-wheeled and two-wheeled electric vehicle industry in Indonesia.
"We are very enthusiastic. Indonesia is a country with tremendous potential. I am sure that there will be electric cars made in Indonesia with designs according to the interests of the Indonesian people in the future. We will immediately follow up today's meeting with discussions and technical surveys," Liu said in the statement.
Also, Liu said the company pledged a total commitment to involve local small, medium-sized enterprises (SMEs) in the electric vehicle industry. That was in line with the Indonesian government's specific request for SMEs empowerment and Foxconn's "Build, Operate, Localize" (BOL) business model.
"We will not only assemble, but we want to build a whole industry for Indonesia in Indonesia," said Liu.
The company, however, did not disclose a timeline for the investment plan.
Foxconn will cooperate with Gogoro to develop two-wheeled electric scooters in Indonesia. Gogoro's Horace Luke said the company would be eager to bring its trademark battery-swap system to Indonesia and develop the infrastructure here.
"We started in Taiwan and saw that Indonesia was the right place for us to develop electric scooters. Our electric scooters do not use charging technology but battery swaps. We think this is very appropriate for use in Indonesia," said Horace.
Founded in 1974, Hon Hai Precision Industry is a contract manufacturing company primarily of electronic components and products. Headquartered in New Taipei City, Taiwan, the company has also operated in other countries such as Brazil, India, Japan, Mexico, and several countries in Europe.
Foxconn is better known as the "manufacturer of Apple products" and manufactures for various other leading global brands such as Google, Hewlett-Packard (HP), Intel, Dell, Amazon, Nintendo, Sony, and Xiaomi.
Meanwhile, Gogoro, founded in 2011, is a technology company that develops two-wheeled smart electric scooters and a pioneering battery exchange infrastructure ecosystem in Taiwan.
Bahlil said Indonesia is the right place for the companies' investment in the electric battery ecosystem because the country had the advantages of natural resources as raw materials for electric batteries. Indonesia was also aggressive in developing its infrastructure also has equitable infrastructure development to cater to its growing middle class, a productive workforce, and a promising market for the electronic vehicle industry.
"The government is very committed to the plan. So, we will ensure all permits and incentives through one door, namely the Ministry of Investment. I will take care of it myself," he said.