LG to invest $15 million in RI next year

Zakki P. Hakim, The Jakarta Post/Jakarta

Consumer electronics producer PT LG Electronics Indonesia (LGEIN) said it would invest up to US$15 million in the country next year, bringing its total investment in Indonesia to $90 million, a senior executive said.

Moon Ik-jang, LGEIN corporate planning executive, said the money would be used to finance the research and development of products manufactured in the country, to buy new machinery and to expand the company's marketing and after-sales service network.

"Actually, most of the fresh investment will be spent for the purchase of new machinery because we will be launching new models next year," LGEIN general and sales manager Sung Khiun said.

Sung said the company would open additional representative offices across the country to strengthen its marketing network and after-sales service.

LGEIN currently has 15 branch offices and 71 service centers in several major cities across the country.

The company booked total sales of $330 million in 2004, 67 percent of which came from domestic sales and 33 percent from exports.

"For 2005, we are targeting a sales increase of 42 percent to $420 million, with 70 percent from domestic sales and 30 percent from exports," Sung said, added that the company was optimistic that electronics market in Indonesia would continue to improve next year.

LGEIN is targeting 32 percent growth in domestic sales of digital displays and media products, which include televisions, monitors and audio-video products.

Sales of digital appliances such as refrigerators, air conditioners and washing machines are expected to grow by 49 percent.

"Refrigerator sales are expected to grow by 49 percent, air conditioners by 61 percent and washing machine by 32 percent," Sung said.