Workers work on a production line in a Foxconn factory. [File photo]

Taiwan-based contract manufacturer Foxconn announced it will invest US$1 billion to build a factory in Indonesia after a week-long field inspection, taking its total investment in the country to US$10 billion.

Foxconn said that the new factory will create about 1 million jobs and the Indonesian government hailed the investment as a boost to the development of technology and manufacturing in the area.

Indonesian industry minister M.S. Hidayat said that Foxconn will build a technology industrial park rather than just a factory.

"Foxconn is looking for a 1,000-mu (667 sq meters) site," said M.S. Hidayat. "They plan to build something akin to Silicon Valley."

Foxconn has factories in the Chinese mainland and Brazil, but it has reportedly shelved its plan to expand further into Latin America.