While wages in Indonesia are lower than those in China, Indonesia in many areas lacks the infrastructure crucial to a company as massive as Foxconn, China’s largest exporter. The archipelago’s clogged roads, frequent power disruptions and overstretched ports all get in the way of producing and delivering products cheaply and on time.
Amazing how a country so aspired to be a giant could hit the same brick wall over, and over, and over, again. Infrastructure. But honestly i’m indifferent about Foxconn wanting to open business here. I think it could solve lots of problems, including the fact that with so many low-wage jobs available, we might not have to send so many workers to foreign countries. But in reality, Indonesia might not be the best option for Foxconn.
Why? Two reasons:
1. Very open media culture
2. Very corrupt political bases that operates like leeches
These 2 factors, when mixed together, will make Indonesia a very expensive option for factories like Foxconn to operates. Politicians will try to find every holes and weaknesses of Foxconn operation and complain in the media. And the unions. Demands, complains, lobbying, public relations. Very expensive.
To make it simple and short, operating in a full-fledged democracy is very expensive for factories like Foxconn to operates in. If i’m the CEO of Foxconn i’d consider opening factories in places like Myanmar or Vietnam instead.