Sharp to invest $9.3 million in 2005

The Jakarta Post, Jakarta

In a bid to boost its market share in the country, electronic producer PT Sharp Yasonta Indonesia (Sharp Indonesia) -- an affiliation of the Japan-based Sharp Corporation -- plans to invest US$9.3 million this year.

Company president Kenji Okunaka said on Thursday that the amount was part of the total $2.15 billion the firm would invest worldwide.

Sharp Indonesia, which currently holds 20 percent of the electronics market in Indonesia, increased its sales value from Rp 900 billion (US$98.2 million) in 2003 to Rp 1 trillion in 2004.

And with the new investment coming in "we hope to increase our 2005 sales to Rp 1.3 trillion," said Okunaka.

"Indonesia's electronics market is still has much potential as we have seen positive indications," said Sharp Indonesia's director of sales and marketing, Jino Sugianto, in reference to the successful 2004 general elections and the 5 percent economic growth the country posted during the year.

This year, the company plans to increase sales by investing in its two plants located in Pulogadung, East Jakarta, and Karawang, West Java. The amount will be allocated into innovative new technologies and for increasing output as well as efficiency.

The plant in Pulogadung exports the popular Simba mini hi-fi to Congo, Africa and refrigerators to Japan, the Philippines, Malaysia and Singapore.

The company will also this year develop new environment friendly technologies such as the Plasmacluster air cleaner currently applied in Sharp's air conditioners.

"There is an increase in demand for eco-friendly technology and flat TVs," Jino said, adding that Sharp will launch several types of LCD (liquid crystal display) and flat TVs in Indonesia by the end of 2005.

Sharp plans to enter Indonesia's cellular phone market early this year.

The company donated Rp 3 billion for tsunami-stricken countries in South East Asia last week, of which Rp 1 billion was allocated for Indonesia. (003)

I-box Sharp sales 2004 (in units)

Item Amount Market share

CTV 949,000 24% Refrigerators/ Freezers 550,000 30% Air Conditioners 39,000 5% Washing machines 91,000 14% Audio cassette recs 120,000 9% Audio Hi-fi 71,000 28% Microwaves 50,000 26%

Source: Sharp Indonesia