RI to become base for LG products for Asian, Australian markets

Jakarta (ANTARA News) - South Korean electronics producer LG Electronics Corporation is planning to make Indonesia a base for production of four types of domestic appliances for the Asian and Australian markets.

"We are planning to make Indonesia a base for the production of LCD televisions, plasma televisions, refrigerators and audio videos for the Asian and Australian markets," PT LG Electronics Indonesia (LGEIN) General Manager Budi Setiawan said here Tuesday.

The plan would be implemented in stages until 2007 when the company would relocate its two-door refrigerator plant from South Korea to Indonesia, he said.

Once the relocation had been completed, the production base would have a capacity of producing 1.6 million LCD televisions, flat and plasma televisions and 1.8 million refrigerators, he said.

Unfortunately, the production of domestic appliances still would be highly dependent on imported components, he said.

"Actually, we want to use local components but many of them do not yet meet the required standards because our products must be acceptable to the international market," he said.

Due to the decision to make Indonesia a base for the production of LCD televisions, plasma televisions, refrigerators and audio videos, the company relocated its air conditioner plant from Indonesia to Thailand last year, he said.

He stopped short of mentioning the amount LGEIN would invest next year to make Indonesia a base for the production of several types of domestic appliances.

LGEIN`s sales are projected to reach US$314 million in 2006 compared to US$251 million a year earlier.

The company expects its sales in 2007 to increase to US$408 million.