Hon Hai in final leg of negotiations to expand in Indonesia; Hon Hai is reportedly in advanced negotiations with Erajaya Swasembada, Indonesia’s leading mobile phone distributor, and Jakarta-based tech company A2Z Technology

September 24, 2013 Leave a comment

Hon Hai in final leg of negotiations to expand in Indonesia

Staff Reporter

2013-09-23

Taiwan’s Hon Hai Precision Industry — the world’s largest electronics contract manufacturer, better known by its trading name Foxconn — is entering the final stages of solidifying new alliances in Indonesia, reports our sister paper Commercial Times. Hon Hai is reportedly in advanced negotiations with Erajaya Swasembada, Indonesia’s leading mobile phone distributor, and Jakarta-based tech company A2Z Technology. The company has been building an investment plan in Indonesia for more than a year, though it was not until a recent cross-strait summit that chairman Terry Gou announced that Indonesia will be Hon Hai’s next target for development opportunities in Asia. According to sources, Hon Hai is still undergoing negotiations with local enterprises in the hope that it can secure an industrial park of a specified minimum size to house Hon Hai factories and mobile phone production facilities in the country. In return, Hon Hai will reportedly provide its technical knowledge and innovation to offer a boost to the local economy and tech industries. Potential partner Erajaya Swasembada has nearly 400 retail outlets and 25,000 distributors in Indonesia, accounting for 30% of the domestic market. In addition to Erajaya and A2Z Technology, Hon Hai is also said to be in discussions with telecommunications providers and industrial park developer Jababeka.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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