Friday, August 13, 2010

LG will not relocate its factory from Indonesia


LG Electronics Indonesia has argued the news that LG will relocate one of its factories in Tangerang outside Indonesia. LG hand over about the road infrastructure improvements to the Indonesian government.

President Director of LG Electronics Indonesia, Kim Dae Weon, confirmed today the company does not have a plan to leave Indonesia, or relocating any factory. "LG already invest in Indonesia since 1991. LG has become part of Indonesia and helped to get better quality people," said Kim Dae Weon at Crown Plaza, Jakarta, Friday, August 13, 2010. While for the road infrastructure problem, Kim believes the Indonesian government will do the best. LG wants to maintain good relations with the Indonesian government, especially local government.

According to Kim, is the road infrastructure needs of the two parties between LG and the government. Although the infrastructure is damage, LG business in Indonesia is still positive. LG Global still  rate Indonesia as one of the company's main market. Of the 120 countries that became LG product markets, Indonesia is in the "Top Seven" LG sales worldwide. "As for domestic sales and exports, Indonesia is in the seven major LG from 120 countries. That is why Indonesia's position is very important for the LG Global," Kim said.

Based on LG data, LG Electronics Indonesia sales increased 36 percent in the first half of 2010 compared to the previous period. The highest sales was contributed by LCD, refrigerators, and washing machines.

Previously reported, the Minister of Industry, MS Hidayat has received complaints from LG regarding the destruction of road infrastructure along seven kilometers around the LG factory in Tangerang. However, when confirmed, LG did not provide a detailed explanation. "LG is only to say the real situation to the government," said Head of Public Relations, LG Electronics Indonesia, Dewi Damayanti.