JAKARTA (Yosefardi) – ICT retailer Erajaya Swasembada (ERAA), operator of Erafone outlets, jumped 4.26% to Rp1,470 Wednesday (Oct 2) with over 17 million shares exchanged hands.
The stock has rebounded 45% from its buttom, but lost 57% from its peak year to date.
Media reported this morning ERAA has completed negotiation with Foxconn Technology Group. Both companies will supply over 50 million smartphones in Indonesia starting next year, 20% of total demand of 250 million units of smartphones per year.
ERAA and Foxconn will build a joint venture (JV) company, a follow up of memorandum of understanding (MoU) already signed.
ERAA currently operates 400 outlets and 25,000 distribution networks in Indonesia. Foxconn plans to build factory for producing smartphones with investment cost of US$8-10 billion.
Foxconn also is in talk with PT Jababeka Tbk (KIJA) for acquiring land in Jababeka industrial estate. It also in negotiation with Polytron, electronic producer owned by Djarum Group, for producing local smartphones.