C

ommemorating its 20th anniversary, LG Electronics Indonesia vowed to continuously expand its investments in Indonesia, the largest economy in Southeast Asia, and strengthen its domination of the country’s electronics market.

The subsidiary of South Korea’s electronics giant LG Electronics says that with its huge population and strong purchasing power, Indonesia is among the most appealing market targets for electronic products.

“We’ll focus on creating a long-term portfolio and financial policies to become the number one electronics brand in this country,” LG Electronics Indonesia president director Kim Weon Dae said at a celebration in Jakarta on Friday.

According to Germany-based independent market research institution Growth for Knowledge (GFK), in 2009 LG dominated the Indonesian market in nine categories: air conditioners; washing machines; LCD monitors; LCD televisions; plasma televisions; audio home systems; home theaters; DVD players; and blue-ray DVD players.

For those nine product categories LG products represented more than 30 percent of the total electronics market in Indonesia, LG’s country human resources chief Chairul Hamdani told reporters.

“We’re the market leader for consumer electronic products in this country,” he said.

LG’s presence in Indonesia dates back to 1990. The company currently operates two production facilities in Bekasi, West Java, and in Tangerang, Banten. The Bekasi factory is dedicated to producing televisions, audio, video and computer monitors, while the Tangerang plant is dedicated to refrigerators only.

The two factories serve not only to supply the Indonesian domestic market, but also play a role as the company’s production base for the global market.

LG Electronics Indonesia employs 4,500 workers spread at 22 branch offices across the country. It also operates 174 after-sales service outlets nationwide to provide its consumers with the best and most convenient service.

Deputy Trade Minister Mahendra Siregar said that he had talked to LG Electronics executives both in Indonesia and South Korea and indicated that the company would further develop its businesses and investments in Indonesia.

“They said that they don’t want to choose the wrong place for investments and they confidently claimed that Indonesia is the best place for their future business development plans,” he told an audience of around 3,000 attendees at the celebration.

Mahendra added that Indonesia would soon enter a period in which the national per capita income would reach US$3,000. This heralded a great potential market for consumer electronic products, he said.

“They [LG executives] said that they won’t let go of this very good opportunity. They’re committed to seriously exploring the domestic market,” he said.

LG was projected to become the largest contributor to Indonesia’s electronic exports this year, Mahendra said, adding that the country’s export value might reach $10 billion, the highest number Indonesia had ever achieved, in which LG was expected to contribute around 13 percent, or $1.3 billion.

In 2006, 2007 and 2009, the Indonesian government awarded LG the Primaniyata Award, given to companies with the best export performances. The company also received the Indonesia Investment Award and Best Design Award in 2008.