Midea invests 2 million US dollars in Indonesia

Antara News, Thursday, June 24, 2010 09:26 WIB

Jakarta (ANTARA News) - Chinese electronic company Midea Electronics invested an initial 2 million US dollars to enter the Indonesian market.

"By building a joint company, Midea is officially operating in Indonesia with an initial capital of 2 million US dollars," President Director of PT Midea Planet Indonesia (MPI) Jino Sugianto said after launching Midea Brand at Hotel Indonesia Kempinski in Jakarta on Wednesday.He said the money will be used to expand the marketing network.

He said that he became interested in entering the Indonesian market because the country has a very large population.

"Besides Indonesia is one of the three countries in the world besides China and India with the ability to revive in the recent global crisis," he said.

He also said that Indonesia has a very large market potential and a steady economic growth with the support of a favorable economic and political situation.

"This is what makes the Indonesian market very promising in our view," Jino said.

Midea Indonesia officially started operating in Indonesia on Wednesday in a joint company called PT Midea Planet Indonesia sharing 51 persen of the shares for Midea China and 49 percent for local company PT Maco Amangraha.

As an initial target, the company is aimed at Rp100 billion till the closing this year.

"In the next three years, we believe that we will enter the five biggest electronic players in Indonesia with sales reaching 30 million US dollars," he said.

He added that in the coming days he will also become interested to open a production center in Indonesia like what had been built in Vietnam, Thailand, and Belarus.

The company which was buiilt in 1968 produced household utensils like air conditioners, refrigerators, electric fans, and washing machines.

In China, the company has been successful in becoming the biggest market shareholder in electronics.

President of the International Division of Midea China John Cen said the company has the support of 17 production centers in leading industries in China and in some other countries.

"We are also supported by R & D products of the latest technology with a marketing network in more than 150 countries," he said.

Up till 2008, total assets of the company set up by He Xiangjian had reached Rp59.4 trillion from merely Rp30.4 trillion in 1993.

Total sales up to 2009 reached Rp140 trillion, and targeted to increase by 20 percent to Rp170 trillion in 2010.

In Indonesia, he has prepared 30 after sales network outlets in Sumatera, Jawa, Bali, Kalimantan, and in Sulawesi.This number would be raised to 100 outlets by the closure of 2010.