Foxconn planning $1 billion facility in Indonesia

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.

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Latest comments (8)

Bruce Everiss Marketing Consultant 5 years ago
$100 a month is a lot.

1.3 thousand million of the earth's population are on 1 a day or less:
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Liam Farrell5 years ago
and compnaies like foxconn will keep it that way
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Greg Wilcox Creator, Destroy All Fanboys! 5 years ago
@Bruce: Would YOU go to work for $100 a month?

I thought not.
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Jonathan Tan , 5 years ago
Translation of Foxconn's statement: "We're thrilled at the cheap labour Indonesia will be providing us to exploit. Hooray!"
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Fran Mulhern , Recruit3D5 years ago
"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."
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Bruce Everiss Marketing Consultant 5 years ago
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.
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Fran Mulhern , Recruit3D5 years ago
"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.
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Andrew Ihegbu Studying Bsc Commercial Music, University of Westminster5 years ago

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.
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