PT Pegatron Technology Indonesia, a subsidiary of a Taiwanese electronics giant, has opened its factory in the Batamindo Industrial Park in Batam, Riau Islands, worth US$40 million, marking Pegatron’s first operations in Southeast Asia.

The opening of the factory was kicked off by Riau Islands Governor Nurdin Bairun and attended by Batam Mayor Muhammad Rudi, Batam Indonesia Free Trade Zone Authority (BIFZA) head Edi Putra Irawadi and Pegatron Corporation vice president Jason Cheng.

Governor Nurdin welcomed the opening of Pegatron’s Batam factory, saying that it was an indication that Batam had a good investment climate as it was selected as the first factory of the company in Southeast Asia.

“Batam is an attractive place for investment. I will make a request to President Joko “Jokowi” Widodo to continuously improve the investment policy to attract more foreign investors,” he said in his speech.

Meanwhile, Jason Cheng said the company planned to employ some 1,800 workers in the Batam factory, which occupied a 1-hectare plot of land.

“Pegatron marks the beginning of our development in Southeast Asia. I’m very thankful for all the support from the government and our partners. Batam offers sufficient manpower and well-established infrastructure,” he said

“We look forward to working closely with the authorities and our partner PT Satnusa. We will collaborate to bring success and prosperity for Batam and Indonesia.”

Based on the data from PT Batamindo Industrial Park, the Pegatron factory in Batamindo produced 2,000 pieces of miniature circuit breaker (MCB) per day.

The MCB devices are then are sent to a factory of Satnusa Persada located in Pelita also in Batam to be assembled into smart home wifi routers. Satnusa Persada exports the products to the United States.

Batamindo Industrial Park general manager Tjaw Hioeng said the establishment of the factory was part of the impact of a trade war between the United States and China. Previously, Pegatron’s factories were located in Shanghai and Shuzoi, China. (bbn)