Company officials indicated earlier this month that it would be difficult for Hon Hai to expand into Indonesia if it was forced to pay import taxes on all of the electronic components currently unavailable in the Southeast Asian country.
"If we try to make phones here, there are 100 components we will need to pay tax on. How would you be able to make a reasonable, profitable business?" Simon Hsing, a company spokesman, told reporters on the sidelines of an economic summit this month.
Hon Hai has a tentative agreement in place with Indonesia's largest mobile phone distributor, PT Erajaya Swasembada , to build a manufacturing plant to assemble handsets, Erajaya's CEO Budiarto Halim told Reuters earlier this month.
He declined to provide specifics of the deal, but said Erajaya would hold a minority stake in the joint venture.
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