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Executive column: Honeywell Indonesia to focus on aviation, smart building technology
Honeywell Indonesia, the local unit of diversified conglomerate Honeywell International Inc., is redirecting its focus from the oil and gas sector to aviation and smart building technology following a shortfall in Indonesia’s energy-related investments last year.
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Honeywell Indonesia president director Roy Kosasih poses with an auxiliary power unit (APU) in this picture. (JP/Norman Harsono)
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em>Honeywell Indonesia, the local unit of diversified conglomerate Honeywell International Inc., is redirecting its focus from the oil and gas sector to aviation and smart building technology following a shortfall in Indonesia’s energy-related investments last year. Indonesia’s investment in the energy sector last year only reached 86 percent of the government’s US$37.2 billion target, prompting the Energy and Natural Resources Ministry to set a lower target of $33.34 billion for this year. Honeywell’s readjusted focus will pit it against other global brands in aviation and building technology. How is the company preparing its strategy to take on the competition? The Jakarta Post’s Norman Harsono talked to Honeywell Indonesia president director Roy Kosasih during a media visit in Shanghai, China, to discuss the issue. Below is an excerpt of the interview.
Question: Why did Honeywell decide to focus on aviation and building technologies?
Answer: We saw that the aviation industry in ASEAN had the second fastest growth in Asia Pacific after China. Indonesia, under Lion Air and Wings Air, just ordered 250 planes around two years ago while Vietnam Airlines ordered 100 airplanes just the other day. This is a fast growing industry because of the growth of the middle class, who enjoy traveling and can easily do so with low-cost budget airlines.
We have observed a similar rapid growth in the property sector in Indonesia and Malaysia, so we will naturally move our business to these fast growing sectors.
We know that the Indonesian government has plans to either upgrade or construct refineries, such as with the one in Tuban [East Java] and Balikpapan [East Kalimantan]. But until these refineries are completed, we will focus our business elsewhere.
How will Honeywell differentiate itself in approaching these two new markets?
So, connectivity is the jargon that we are implementing. It differentiates us from our competitors.
