Lee: Samsung's man in Indonesia

Lee: Samsung's man in Indonesia

A'an Suryana, The Jakarta Post, Jakarta

Four businessmen visited The Jakarta Post last month to share
their views about the latest development in the Indonesian
expatriate business sectors.

Their visit was actually part of a regular monthly program
aimed at boosting communications between the paper and the
business community.

It was held in the afternoon, a challenging time for most of
the reporters who already felt tired after working for hours.
Some were even worried they might fall asleep during the
discussion.

The atmosphere quickly changed though when a young foreign
businessman took the first chance to speak.

All eyes and ears were stuck to him, amazed by his high
energy.

He bombarded the audience with his visions and statements
criticizing the expatriate business environment in Indonesia,
ranging from smuggling to the unfavorable tax system --
irregularities which he said deterred investors from entering
Indonesia or from expanding their businesses in the country.

Unlike other foreign businessmen who are mostly reluctant to
openly complain about the situation here for fear of retribution
from the government, he was sharp, outspoken and blunt in
criticizing government policy.

"If more Indonesian businessmen were similar to him, the
private sector here would have developed at a more accelerated
pace" said Anton Supit, head of the Indonesian Footwear
Association (Aprisindo).

The person Anton Supit pointed out was 36-year old Lee Kang
Hyun, General Marketing Manager of PT Samsung Electronics
Indonesia, a unit of South Korean electronics giant Samsung
Electronics Ltd. Pte.

Lee, a son of wrist watch entrepreneur Lee Ki Hwan, was born
in Seoul, South Korea on July 16, 1966. After graduating from the
reputable Economic Management department, Hankuk University in
South Korea, he began his career in the South Korean chaebol
conglomerate Samsung in 1991.

Lee first joined Samsung Electronics Ltd. Pte as a member of
the Audio-Video export team in 1991. Two years later, he was
promoted to the position of Export-Import Manager at PT Samsung
Electronics Indonesia, which now produces Video Cassette
Recorders (VCR's), CD-ROM and DVD players.

The company's plant in Cikarang, West Java currently has 2,000
employees and racked up US$950 million in sales last year.

He said that he thanked his company for placing him in
Cikarang as he had been long interested in Indonesia.

After almost 10 years working at Samsung's plant in Cikarang,
he was promoted to the position of General Marketing Manager for
Samsung's operations in Indonesia.

This was unusual. Normally, a South Korean native Samsung
official is placed in a foreign country for four or five years.
After that, they will be moved to other countries or back to the
headquarters in Seoul.

His excellent understanding of Indonesia and his close and
broad relations with the Indonesian business community and
governmental officials is considered by Samsung as invaluable
and the company exempted Lee from this particular corporate rule.

Samsung considers Lee their most valuable employee asset in
Indonesia.

Not only Samsung, but other electronics producers in the
country have acknowledged Lee's professionalism by selecting him
to chair the Indonesian Electronics Association (Gapkindo).

It is rare when foreigner heads a local business association
in Indonesia.

"Samsung retains me here, perhaps, because the management
thinks that I am deeply involved with Indonesia," Lee told The
Jakarta Post in fluent Bahasa Indonesia at his office last week.

Lee is married to an Indonesian, a flight attendant, whom he
met during the flight on Garuda Indonesia. His wife is a native
Sumedang of West Java. Despite the marriage, he retains his South
Korean nationality. The couple have a five year old child.

Lee's passion for Indonesia is abundantly evident.

He recalled when the Samsung board of executives in Seoul once
decided to pull out its investments from Indonesia as Indonesia's
competitiveness had waned.

Lee resisted, arguing that Indonesia was still a productive
investment destination.

"The population is huge, the business infrastructure is good,
and we have skilled labor here. We will loose the advantage if we
move our factories out of the country," he argued.

His passion for Indonesia often prompts him to lash out at
investment obstacles here.

In addition, Lee, as Gapkindo's chairman, actively gives
advice to the government to improve the expatriate business
climate.

"This happens because I love Indonesia very much. Indonesians
are friendly and warm," said Lee.

According to Lee, there are three problems which make
Indonesia still unattractive to foreign investors: rampant
smuggling, bureaucratic obstacles and the existing tax policy
which does not provide incentives for investors.

"Should the government fail to address these problems, foreign
investors will continue to shy away from Indonesia," Lee warned.

Another thing that keeps annoying him is the selfishness of
the Indonesian elite, and their inclination to enrich themselves
while ignoring the interests of the public.

"This impedes the advancement of the nation, as most national
resources go to a few people, while the rest remain poor," he
said.