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Foxconn planning $1 billion facility in Indonesia

Foxconn planning $1 billion facility in Indonesia

Wed 18 Jul 2012 7:27am GMT / 3:27am EDT / 12:27am PDT
Hardware

New manufacturing plant will create 1 million jobs in the region, where the average monthly wage is $100 a month

The market leading computer manufacturer Foxconn is planning a new $1 billion facility in Indonesia.

The new manufacturing plant will create around 1 million jobs in the region. Foxconn is currently discussing its plans with the Indonesian Ministry of Industry.

Foxconn already operates several manufacturing plants in China and Brazil, where it assembles electronic goods for many of the world's biggest technology companies.

In a statement released yesterday, the company says it was attracted to Indonesia over Malaysia and Vietnam due to its high rate of economic growth - around 6 per cent a year. It also noted that the region is "sorely in need" of formal jobs, giving it a large workforce used to wages of around $100 a month.

"We are looking forward to establish a new manufacturing plant in Indonesia, although nothing is finalised yet," a Foxconn representative in a statement. "This will help us in manufacturing good quality products and make them available in the markets at lower prices. With this, Indonesians will also get better employment opportunities. We will continue our efforts in establishing more manufacturing plants across the globe."

Foxconn has attempted to raise the standard of working and living conditions in its huge factories due to widespread reports of accidents, fatalities and suicides. However, despite the evidence, demand for jobs at the company's factories in countries like China remains high.

8 Comments

Bruce Everiss
Marketing Consultant

1,692 594 0.4
$100 a month is a lot.

1.3 thousand million of the earth's population are on 1 a day or less: http://www.bbc.co.uk/news/magazine-17312819

Posted:2 years ago

#1

Liam Farrell

66 13 0.2
and compnaies like foxconn will keep it that way

Posted:2 years ago

#2

Greg Wilcox
Creator, Destroy All Fanboys!

2,146 1,060 0.5
@Bruce: Would YOU go to work for $100 a month?

I thought not.

Posted:2 years ago

#3

Jonathan Tan

9 1 0.1
Translation of Foxconn's statement: "We're thrilled at the cheap labour Indonesia will be providing us to exploit. Hooray!"

Posted:2 years ago

#4
"Those Chinese workers are beginning to ask for more and more, so we're looking at where to move our sweatshop to next. Ideally somewhere where people earn next to nothing and where labour laws are in their infancy.

Oh look, Indonesia."

Posted:2 years ago

#5

Bruce Everiss
Marketing Consultant

1,692 594 0.4
Everywhere that sweat shop manufacturing moves to it raises living standards.
Obviously, because it is labour intensive, this manufacturing will continually move to wherever labour is cheapest. So they have the effect of helping those on earth who have the most need.
The eventual result of this will be that the whole population of the planet will become middle class.

Lower tariff barriers will speed up this distribution of wealth. This is where the EU and then USA are totally immoral putting up trade barriers against poorer countries. Agricultural subsidies being one of the most pernicious barriers that prevent the advancement of low income economies.

Posted:2 years ago

#6
"The eventual result of this will be that the whole population of the planet will become middle class."

This is the most bizarre thing I've ever read on here.

Posted:2 years ago

#7

Andrew Ihegbu
Studying Bsc Commercial Music

439 146 0.3
@Bruce.

Your view of sweatshops is more than a little misguided unfortunately. I wish as much as you did that that was the case but there is no hierarchal path to the 'middle class' unfortunately.

Its not like they are hiring management from those cities, one will they ever because there is threshold of how much you can pay someone and how skilled they can get before they will simply emigrate to a first world country and take a significant pay rise. This would do nothing for a company (as there is already plenty of third world management positions remotely filled by first world staff) so they are forced to keep wages low, not that they complain.

Posted:2 years ago

#8

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