TEMPO.CO, Jakarta - Industry Minister Mohamad Suleman Hidayat confirmed that South Korean electronics giant Samsung is expected to build a cell phone factory in Indonesia this year.
"They are definitely building a factory in Indonesia. They will the factory before Foxconn does," he said after attending President Susilo Bambang Yudhoyono’s annual State of the Nation address at the House of Representatives, on Friday, August 15, 2014.
Hidayat said that he could not yet reveal the details of the plan.
However, he said that although he could not tell exactly the value of Samsung’s investmnt, he believed it would be significant and would provide many job opportunities.
Therefore, he said that the Industry Ministry highly recommends the presence of Samsung’s plant in Indonesia.
Hidayat added that the Directorate General of Taxes is currently evaluating Samsung’s investment in order to get the exact information.
"It will be located in Java," Hidayat added.
Previously, Jakarta Governor Joko Widodo has also indicated the South Korean company would build a factory in Indonesia.
South Korean Ambassador to Indonesia Mr. Cho Tai-Young even met Jokowi at Jakarta city hall to discuss the issue.
“During the meeting, Mr. Ambassador talked about Samsung’s expansion plan in Indonesia. In December [Samsung] will start the construction of its cellular phone plant,” said Jokowi on Wednesday, August 13, 2014 after the meeting with Mr. Cho.