Photo source: screenshoot of www.erajaya.com

(The Insider Stories) - Indonesia handset distributor and retailer PT Erajaya Swasembada (IDX:ERAA) has signed memory of understanding (MOU) with Taiwan-based Foxconn Technology Group to  to find partnership opportunities in Indonesia.

"Since last year Foxconn has been looking for local partner to open a manufacturing plant. Basically, we want to participate in Foxconn's plan in Indonesia,"

Erajaya's President Director Budiarto Halim told reporters.

Foxconn,  the electronic producers plans to invest US$10 billion in the next ten years and will starting the initial investment up to US$1 billion in areal 50 hectares land in Banten province which are estimated to eventually span over 500 hectares.

The firm might ground break its project in December as it aims to produce and sell its products in the middle of next year. Industry Minister MS Hidayat said, Foxconn was settle they're local partner Agung Sedayu Group and Erajaya  to run their business in Indonesia.

But He deny to decline mention the names. Halim said, one of their long term plan is to build a manufacturing plant in Indonesia because they believe on the future of the business and the industry.

Erajaya, He said, is very supportive on government's long term plans to increase value added in Indonesia, technological transfer, create job creation and reduction of electronic and devices import.

As of today, discussing between the two companies undergoing to settle the form of partnership, the feasibility study, capital injection, time schedule, and when the operation will start, and so on.

"We are serious in this and we are focused. We have special team to handle this and will announce further the development," Halim said.

Erajaya targeting the revenue IDR15.5 trillion and handset sales growth over than 18% from previous year IDR12.88 and 10.2 million units. 69.9% shares of Erajaya owns by Ardy Hady Wijaya, Budiarto Halim and Richard Halim Kusuma and public arround 40%.