LG Group to expand into new sectors
JAKARTA (JP): South Korea's LG Group is set to boost its presence in Indonesia by further expanding into real estate and financial and agribusiness sectors despite Indonesia's current monetary crisis.
LG Group's executive director Young Soo Kim told The Jakarta Post yesterday its expansion was part of the group's vision of a 'leap 2005 philosophy' to strengthen their presence in the Association of Southeast Asian Nations (ASEAN) region by the turn of the century.
"The LG Group prioritizes Indonesia as a lucrative investment spot in ASEAN," he said.
Young said the LG Group was looking for local partners to enter the new business sectors.
However, he declined to mention the amount of investment in the sectors.
The LG Group, which began its operations in Indonesia in early 1990, has operated several joint ventures with local partners.
The group has signed at least six joint ventures with Indonesian companies through LG Chemicals, LG Engineering, LG International, LG Industrial Systems and LG Construction.
LG Chemicals set up PT Sinar LG Plastic Industries in 1991 to produce PVC pipe with total production of 10,000 tons per year.
LG Group, through LG Electronics, set up PT LG Electronic Display Devices Indonesia in 1995 to produce electron guns, monitors, deflection yokes and flybacks.
LG Electronics set up PT LG Bangunindo Electronics in 1994 to produce waterpumps with total production of 300,000 pumps per year.
LG Electronics also set up PT Video Display Glass Indonesia to produce gas bulbs.
LG Industrial Systems set up PT Humpuss LG Industrial Systems, a joint venture with the Humpuss Group, to produce motor control center and relay panels.
In late September this year, LG Insurance set up PT LG Simas General Insurance in a joint venture with the Sinar Mas Group to deal with general insurance businesses.
Young said LG Group's operations in Indonesia had recorded US$349 million in revenue as of December 1996.
LG Group, established in Korea in 1947, has become Korea's third largest conglomerate with 52 companies operating in 120 countries worldwide. (aly)