

Assemble here (Photo credit: Wikipedia)

Taiwanese manufacturer Foxconn, aka Hon Hai Precision Industry, assembles must-have electronics for Apple, Microsoft etc at its plants in China. Labor conditions in these factories have come in for Western criticism and forced Apple to step up its audits. But Chinese applicants for assembly-line jobs at Foxconn seem undeterred. Now it may be Indonesia's turn. Government officials in Jakarta say that they've held talks with the company on potential locations for Foxconn factories that could generate up to 1 million jobs. That would put it roughly on par with Foxconn's Chinese operations. Trade Minister Gita Wirawan, a former investment banker, said it wasn't clear if Foxconn would manufacture for export or only focus on domestic sales. Indonesia's consumption of electronic baubles is growing rapidly, so there may be a logic in supplying that market, but investing in Indonesia would also represent an alternative to China, provided that the logistics are in place to ship products globally.

Last year it was Brazil in the spotlight as Foxconn broke ground on a facility to produce iPhones. Brazil's government is eager to promote high-tech industries, which is why it makes it expensive to import such items. At the time Brazilian officials talked up the potential for Foxconn to rapidly expand its manufacturing base there. But Brazil is far more costly and cumbersome than, say, Indonesia, and labor problems have already arisen at its plant. Foxconn's investment in Brazil is still relatively small. Indonesia may be a better bet on consumption in Asia and global supply chains.