LG Indonesia boosting DVD player production

LG Indonesia boosting DVD player production

Evi Mariani, The Jakarta Post, Jakarta

South Korean electronics giant LG Electronics is boosting the
production of its digital video disc (DVD) player in Indonesia in
response to the surge in demand for the product.

"Currently, LG's audio-video plant produce six types of DVD
players," Randy, spokesman of PT LG Electronics Indonesia's
audio-video marketing department, told The Jakarta Post on
Wednesday. "By the end of this year, LG targets to add four new
types of DVD players."

The company has been producing refrigerators and televisions
in Tangerang, Banten, for many years. Since the beginning of this
year, it has been producing DVD players, home theater sets and
VCD compo (audio-video set) in Cibitung, West Java.

Randy said that the Cibitung audio-video plant had an annual
capacity of producing 100,000 DVD players, 100,000 VCD compo sets
and 50,000 home theater sets.

So far, LG has three electronics plants in Asia, namely in
China, South Korea and Indonesia. In terms of capacity, the China
plant is the largest, while the plants in Indonesia and South
Korea are the second and third largest, respectively.

The China plant now produces 30 types of DVD players.

"But due to Indonesia's growing market, LG has planned to
focus its audio-video production in Indonesia," Randy said.

He said 30 percent of LG's electronics products in Indonesia
was consumed by the domestic market. The remaining 70 percent was
exported to Asia-Pacific countries like Thailand, Australia and
the Philippines.

Before LG started audio-video production in Indonesia, its
products sold on the domestic market were all imported from China
and South Korea.

Now that LG produces the products in the country, their prices
have dropped by 50 percent.

"Previously, the prices of DVD players -- our most popular
products -- ranged between Rp 1.5 million to Rp 3 million. Now,
the prices range between Rp 800,000 to Rp 1.5 million," Randy
said.

Thanks to the falling prices, LG's DVD player sales jumped to
30,000 units in the first semester of the year, compared to its
total sale of 10,000 units last year. "We expect sales to reach
100,000 units this year," Randy said.