Panasonic committed to long-term investment in RI

Fitri Wulandari, The Jakarta Post, Jakarta

Japan electronics maker Matsushita Electric Industrial Co. (MEI) vowed on Friday to stay in the country for the long-term, saying the business climate here was still good enough for the firm.

"Indonesia's market is conducive for Matsushita. The Investment (climate) in Indonesia is still suitable for our company's purposes," Rachmat Gobel, president of National Panasonic Gobel Group. The National Panasonic Gobel Group (NPG Group) is Matsushita's partner in Indonesia.

Rachmat particularly noted that the government's decision to exempt and/or reduce the luxury tax on electronic products was an incentive that had made it more profitable to stay here.

Rachmat said the policy, which was introduced by the government earlier this year, had helped the company weather fierce competition against cheaper products from China.

"After the stimulus package was applied, competition with Chinese products has been milder," he said.

Rachmat said MEI was committed to maintain its presence in Indonesia through the 30-year-old National Panasonic Gobel Group. PT National Gobel was founded by Rachmat's father Mohammad Gobel.

Rinaldi Sjarif, NPG's sales and service director said Matsushita would increase its investment in Indonesia to show their commitment.

"Matsushita wants to increase their presence in Indonesia to become number one," he remarked.

According to Rachmat, the firm's total investment had reached US$600 million, while its exports this year were estimated to reach US$1.2 billion.

As part of its marketing campaign amid fiercer competition in the electronics sector, MEI, as the brand owner of National and Panasonic has decided to use just Panasonic starting in April 2004.

With its main theme 'Panasonic Ideas For Life', the brand change will be applied globally. In Indonesia, the brand change will start on Dec. 18, 2003.

"It shows our commitment to customer satisfaction and to create product and services that make life easier," Rachmat said.

"We, in Indonesia. support the program. By changing the brand, we are aiming to be the best in Indonesia," he remarked.

Of the total production of MEI, Panasonic makes up 90 percent.

In Indonesia, National has become a household name for electronic home appliances. National's products such as air conditioners, water pumps and other products have become market leaders in Indonesia.

Rachmat said the group's market share was up to 23 percent this year.

He added that there was no change in the ownership of the company with the brand change. A total of US$100 million has been allocated to support the change.