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.