ASEAN KEY DESTINATIONS
Chinese firm invests US$2 million in Indonesia
Chinese electronic company Midea Electronics invested an initial US$2 million to enter the Indonesian market, according to the Antara News Agency.
"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 percent 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 become one of 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 in opening a production center in Indonesia similar to what the firm has built in like Vietnam, Thailand, and Belarus.
The company which was established in 1968 produces air conditioners, refrigerators, electric fans, and washing machines.
In China, the company has been successful in becoming the biggest market shareholder in electronics.
The 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.