Samsung reopens factory

Debbie A. Lubis, The Jakarta Post, Jakarta

South Korean electronics manufacturer Samsung Electronics has reopened its local television factory following an improvement in domestic political and economic conditions.

General manager of PT Samsung Electronics Indonesia Soo Nyoung Choi said on Wednesday that the company had invested around US$1 million in the reopening of the factory.

The plant was closed in 1998 amid political uncertainty at the time.

"Samsung intends to reinvest in Indonesia since demand is increasing and the domestic market is quite good," Choi told a press conference.

He said that the plant would have a production capacity of 40,000 units per month.

Choi said that some 95 percent of the plant's TV output would be destined for the Indonesian domestic market, while the remaining 5 percent would go to the overseas market.

He estimated that the domestic TV market could reach 2.5 million units this year.

The Samsung television factory has been operating since December last year and produces conventional televisions of between 14 inches and 21 inches, and flat screen televisions.

The company also plans to manufacture projection TVs in Indonesia.

Samsung is aiming at achieving an export value of $700 million this year, contributing 10 percent to total Indonesian electronics exports, or one percent of total Indonesian exports.

Choi said that the information technology industry in Indonesia had shown some progress and the company had plans to produce other electronics products, such as monitors and mobile phones in its factory here.